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PRECIOUS-Gold steady near 7-yr peak as persistent virus fears dampen China stimulus

Published 21/02/2020, 12:41 pm
© Reuters.  PRECIOUS-Gold steady near 7-yr peak as persistent virus fears dampen China stimulus
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Feb 21 (Reuters) - Gold prices held steady at a near seven-year high on Friday as nervous investors opted for safe haven assets amid fears about the economic damage from China's coronavirus epidemic that eclipsed Beijing's stimulus efforts.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,619.33 per ounce by 0108 GMT. In the previous session, bullion prices had hit a seven-year high at $1,623.45.

* U.S. gold futures GCv1 were up 0.1% to $1,622.60.

* Daegu, a city of 2.5 million people in South Korea, has become the latest victim of the virus outside China. The country now has 104 confirmed cases of the flu-like virus and reported its first death. The epidemic, which has disrupted China's economic growth and further spread to other countries, could derail a "highly fragile" projected recovery in the global economy in 2020, the International Monetary Fund warned on Wednesday. Asian shares fell on Friday as worries about the coronavirus' spread in Korea, Japan and Beijing drove investors to safe-havens such as the dollar, lifting it to three-year highs. MKTS/GLOB USD/

* Beijing cut the benchmark lending rate on Thursday and is likely to roll out more measures to support an economy jolted by the virus. The U.S. government expects China to honor its commitments to buy more U.S. goods under a trade deal signed by the world's two largest economies in January, a senior U.S. official said on Thursday. Economic data on Thursday showed factory activity in the U.S. mid-Atlantic region expanded more than expected in February, while the number of Americans filing for unemployment benefits rose modestly last week. Russia's gold reserves stood at 73.2 million troy ounces as of the start of February. Switzerland exported 87.7 tonnes of gold in January as a rebound in shipments to Hong Kong offset lower exports to mainland China and India. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD , rose 0.25% to 933.94 tonnes on Thursday. GOL/ETF

* Palladium XPD= advanced 0.5% to $2,704.46 an ounce, having touched a record high of $2,841.54 on Wednesday.

* Silver XAG= was flat at $18.36, while platinum XPT= rose 0.2% to $980.17. DATA/EVENTS (GMT) 0815 France Markit Mfg, Serv, Comp Flash PMIs Feb 0830 Germany Markit Mfg, Serv, Comp Flash PMIs Feb 0900 EU

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