(Updates prices)
* Gold still on track for best week since Feb. 2016
* Global stocks, oil tumble; U.S. Treasury yields at record low
* Platinum climbs over 3%; set for best week in seven
By Harshith Aranya
March 6 (Reuters) - Gold prices swung more than 1% on Friday, sliding from a seven-year high as investors sold the precious metal to cover margin calls as the rapid spread of the coronavirus hammered equity markets.
Spot gold XAU= was up 0.1% at $1,671.24 per ounce by 1:58 p.m. EST (1858 GMT). U.S. gold futures GCcv1 settled 0.3% higher $1,672.40.
Gold jumped 1.2% to its highest since January 2013 at $1,689.65 earlier in the session, but then shed all those gains to drop as much as 1.4%.
"We are seeing a lot of volatility in the equity markets, fairly large losses and uncertainty bringing the S&P below 3,000. We are most likely seeing liquidation of gold in order to cover margin calls," said Bart Melek, head of commodity strategies at TD Securities.
"This is very reminiscent of what happened in the corrections during the financial crisis."
U.S. stocks tanked and the Dow Jones Industrials shed nearly 2%, while government bonds rallied as traders worried about a prolonged economic slowdown. MKTS/GLOB US/ .N
Oil prices also collapsed more than 8% to their lowest levels since mid-2017. O/R
"This dip (in gold) should be bought up fairly quickly as the day goes on. As long as this virus is in the headlines out there, expect gold to continue higher," said Bob Haberkorn, senior market strategist at RJO Futures.
Despite the losses, safe-haven gold is still on course for its biggest weekly gain since February 2016.
Nearly 60 new coronavirus cases were confirmed in the United States on Thursday. Globally, virus cases surpassed 100,000 and over 3,300 deaths have been reported. International Monetary Fund on Wednesday said the outbreak would hold 2020 global output gains to the slowest pace since the 2008-2009 financial crisis. epidemic poses "evolving risks" to the U.S. economy and central bank officials are monitoring developments closely, New York Federal Reserve President John Williams (NYSE:WMB) said on Thursday. Federal Reserve made an emergency 50-basis-point interest rate cut on Tuesday, its first inter-meeting cut since 2008. Lower interest rates reduce the opportunity cost of holding non-yielding bullion. nonfarm payrolls data showed a robust increase in hiring in February, but the report may not reflect the full impact from the outbreak. XPD= dipped 0.5% to $2,520.92 per ounce and silver XAG= was down 0.9% at $17.26 an ounce.
Platinum XPT= rose 3.1% to $891.08, on track to post its best week since mid-Janaury.
The second-largest platinum group metals producer, Anglo American (LON:AAL) Platinum AMSJ.J , had slashed its output outlook due to a shutdown following an explosion.