REFILE-PRECIOUS-Gold slides further as global stimulus hopes buoy equity markets

(Fixes typographical error in story signoff)
* Trump promises "major" steps to bolster U.S. economy
* Japan unveils $4 bln economic package
* U.S. equities, dollar, yields rebound
* SPDR Gold holdings rise to highest since October 2016

By Harshith Aranya
March 10 (Reuters) - Gold slid over 1.5% on Tuesday, backing
off the $1,700 ceiling hit in the previous session, as
expectations of global policy measures to alleviate the economic
impact from the coronavirus eased some investors' concerns and
lifted share markets.
Spot gold XAU= lost 1.6% to $1,653.33 an ounce by 2:37
p.m. EDT (1837 GMT). U.S. gold futures GCcv1 settled down 0.9%
at $1,660.30.
"With the volatility that we had in the U.S. equity markets
in the past few days, we are seeing some people lightening up on
gold a little bit," said Michael Matousek, head trader at U.S.
Global Investors.
"When you are trying to keep a proper allocation across your
investments, you need to sell a little bit of gold and buy a
little bit of S&P and that's what you're seeing right now.
People are rebalancing portfolios."
Bullion rose as much as 1.7% on Monday to its highest since
December 2012 at $1,702.56 after a rout in global equity markets
and crashing crude oil prices. O/R
Oil and global equity markets recovered on Tuesday as signs
of coordinated policy easing to avert a global recession soothed
traders. MKTS/GLOB
U.S. President Donald Trump vowed to take "major" steps to
bolster the economy, and Japan unveiled a second package of
measures worth about $4 billion to cope with fallout from the
virus outbreak. The U.S. central bank, having delivered an emergency rate
cut last week, is expected to cut rates again at its next
meeting on March 18. 0#FF
The European Central Bank is under pressure to help bolster
economic growth. It meets on Thursday. U.S. Treasury yields rose from all-time lows, and the dollar
.DXY also rebounded after major losses, further pressuring
gold prices. US/ USD/
"It could be that Tuesday's rebounds in the equities markets
could be the so-called 'dead-cat bounce' that occurs after major
market sell-offs, only to see prices continue to trend down,"
Kitco Metals senior analyst Jim Wyckoff said in a note.
"The general public's fear of Covid-19 appears to be
continuing to grow."
The specter of the coronavirus remained in the background
with over 114,300 people infected globally. Holdings in the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust GLD , rose to 30.99 million ounces, its
highest since October 2016. GOL/ETF
In other precious metals, palladium XPD= fell 3% to
$2,414.82 an ounce, silver XAG= declined 0.3% to $16.92 and
platinum XPT= rose 0.8% to $869.34.

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Gold gains on global spread of coronavirus https://tmsnrt.rs/2vWpbNQ
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