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PRECIOUS-Gold steady as markets gauge virus impact, await Fed decision

Published 29/01/2020, 01:06 pm
© Reuters.  PRECIOUS-Gold steady as markets gauge virus impact, await Fed decision
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Jan 29 (Reuters) - Gold prices were little changed on Wednesday after sliding 1% in the previous session, as investors took stock of the economic impact of the new coronavirus and awaited the U.S. Federal Reserve's interest rate decision.

FUNDAMENTALS

* Spot gold XAU= remained steady at $1,565.69 per ounce by 0134 GMT. U.S. gold futures GCv1 fell 0.3% to $1,565.10.

* The death toll from the coronavirus outbreak in China rose to 132, while the number of confirmed cases rose to 5,974, heaping pressure on Beijing to control the disease as U.S. weighs on suspension of all flights to the country. Asian shares rose although broader confidence was capped by worries about the economic impact of China's virus outbreak. MKTS/GLOB

* U.S. President Donald Trump on Tuesday proposed creating a Palestinian state as part of a Middle East peace plan, drawing Palestinian condemnation. Yields on the 10-year Treasury note briefly fell below those of the 3-month bill early Tuesday for the first time since October, on concerns over the economic impact of the coronavirus. New orders for key U.S.-made capital goods dropped by the most in eight months in December, while consumer confidence surged to a five-month high in January. Investors look forward to the U.S. Federal Reserve's policy decision due later in the day. FEDWATCH Gold prices will hold above $1,500 an ounce this year and make modest gains in 2021 as low interest rates and geopolitical uncertainly bolster its appeal, while silver prices will begin to catch up, a Reuters poll showed on Tuesday. Swiss gold exports fell last year to their lowest since the records became public in 2012, with shipments to China, the biggest market, tumbling by nearly two thirds, customs data showed on Tuesday. Switzerland's exports of palladium doubled last year while platinum exports fell. Palladium XPD= rose 0.2% to $2,293.75 an ounce.

* Silver XAG= was flat at $17.44, having dipped to its lowest since Dec. 24 at $17.42 earlier in the session, while platinum XPT= shed 0.1% to $984.68.

DATA/EVENTS (GMT) 0700 Germany GfK Consumer Sentiment

Feb 0700 Germany Import Prices MM, YY

Dec 0700 UK

Nationwide House Price MM, YY Jan 0745 France

Consumer Confidence

Jan 0900 EU

Money-M3 Annual Growth

Dec 1500 US

Pending Sales Change MM

Dec 1900 US

Federal Open Market Committee announces its decision on interest rates followed by statement

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