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PRECIOUS-Firm dollar weighs on gold prices amid virus threats

Published 02/04/2020, 10:04 AM
Updated 02/04/2020, 10:08 AM
© Reuters.  PRECIOUS-Firm dollar weighs on gold prices amid virus threats
XAU/USD
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Feb 4 (Reuters) - Gold prices eased on Tuesday as the dollar
held firm after a key U.S. manufacturing survey showed a
surprise rebound, although rising concerns about a widening
coronavirus outbreak in China and its economic fallout provided
some support to the metal.

FUNDAMENTALS
* Spot gold XAU= was down 0.1% to $1,575.27 per ounce by
0156 GMT, after a 0.9% drop in the previous session. U.S. gold
futures GCv1 fell 0.2% to $1,579.50.
* China has agreed to allow U.S. health experts into the
country as part of a World Health Organization effort to help
fight the fast-spreading coronavirus, as the number of cases and
deaths continued to mount. * The death toll from the coronavirus outbreak in China rose
to 425 as of the end of Monday, up by 64 from the previous day,
the country's National Health Commission said. * The dollar .DXY held firm against a basket of rival
currencies after gaining 0.4% in the previous session, its
biggest percentage rise in a month. USD/
* U.S. factory activity rebounded in January after
contracting for five straight months amid a surge in new orders,
a report from the Institute for Supply Management (ISM) showed,
offering hope that a prolonged slump in business investment has
probably bottomed out. * Asian stocks were fragile as cautious investors awaited
further stimulus to boost China's economy due to the onslaught
of coronavirus over the past few days. MKTS/GLOB
* China's central bank flooded the economy with cash while
trimming some key lending rates, but analysts suspect more will
have to be done to offset the economic fallout from the virus.
* With inflation stable and the U.S. economy close to full
employment, the Federal Reserve will be able to keep interest
rates where they are for the time being, Atlanta Federal Reserve
Bank President Raphael Bostic said on Monday. * The Perth Mint's sales of gold coins and minted bars in
January dived 38.8% to 48,299 ounces month-on-month, but were up
54.9% from last year. * Palladium XPD= rose 0.5% to $2,331.19 an ounce, silver
XAG= was flat at $17.66, and platinum XPT= edged higher by
0.1% to $967.01.

DATA/EVENTS (GMT)
0330 Australia RBA Cash Rate Feb
1500 US Factory Orders MM Dec

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