Jan 31 (Reuters) - Gold prices inched lower on Friday after
surveys showed Chinese manufacturing activity held steady in
January and services firmed, although concerns over the
coronavirus and its economic impact kept the metal on track for
a second monthly gain.
FUNDAMENTALS
* Spot gold XAU= fell 0.1% to $1,571.77 per ounce by 0124
GMT. For the month, prices were up 3.6%. U.S. gold futures
GCv1 declined 0.8% to $1,570.70.
* Factory activity in China stalled in January, with the
outbreak of the new virus adding to risks facing the economy
despite easing trade tensions, while growth in the services
sector activity quickened. * This came after the World Health Organization (WHO)
declared the coronavirus a global emergency, as the death toll
in China reached 213 and cases spread to at least 18 countries.
* Director-General Tedros Ghebreyesus said the WHO "doesn't
recommend - and actually opposes" restrictions on travel or
trade with China, and that measures taken by Beijing can
"reverse the tide".
* The U.S. economy missed the Trump administration's 3%
growth target for a second straight year, posting its slowest
annual growth in three years in 2019. * The U.S. House of Representatives passed two pieces of
legislation on Thursday seeking to rein in President Donald
Trump's ability to deploy U.S. forces to fight abroad.
* The virus outbreak in China is emerging as a potentially
major new risk to the global economy and leaving policymakers,
still grappling with the impact of the Sino-U.S. trade war,
fretting over the widening fallout. * On the Brexit front, the United Kingdom leaves the
European Union on Friday for an uncertain future. * India's gold demand is expected to rebound in 2020 as the
government seeks to bolster consumer confidence and spending
power to revive Asia's third-biggest economy, the World Gold
Council (WGC) said. * Palladium XPD= rose 0.3% to $2,316.71 an ounce. Prices
were set to gain of 19% this month, but were down nearly 5% this
week.
* Silver XAG= fell 0.2% to $17.79 and was down 1.5% for
the week, its biggest since the week ended Dec. 6, while
platinum XPT= climbed 0.4% to $981.63 and was on track to
decline 2% for the week.
DATA/EVENTS (GMT)
0630 France GDP Preliminary QQ Q4
0745 France CPI (EU Norm) Prelim YY Jan
1000 EU HICP Flash YY Jan
1000 EU HICP-X F&E Flash YY Jan
1000 EU GDP Flash Prelim YY, QQ Q4
1330 US Consumption, Adjusted MM Dec
1500 US U Mich Sentiment Final Jan