PRECIOUS-Gold gains as markets assess economic impact of virus

(Adds comments and updates prices)
* China to halve some U.S. tariffs starting Feb. 14
* Stocks rise, dollar hits a two-month high
* Spot gold may rise into $1,564-$1,570/oz range -
technicals

By Asha Sistla
Feb 6 (Reuters) - Gold inched higher on Thursday as
investors evaluated the economic impact of the coronavirus
outbreak as the death toll jumped past 500, but the gains in
bullion were capped by China's decision to halve tariffs on U.S.
imports.
Spot gold XAU= was up 0.2% to $1,559.50 per ounce by 0835
GMT. Prices fell to $1,546.90 on Wednesday, the lowest since
Jan. 21. U.S. gold futures GCv1 were flat at $1,563.30.
The death toll from the virus in mainland China jumped to
563, as experts stepped up efforts to combat a disease that has
shut down Chinese cities and forced thousands more into
quarantine around the world. "Globally, people are looking at the coronavirus more than
anything else and also how that would affect the global economy.
That is supporting gold at this point of time," said Brian Lan,
managing director at dealer GoldSilver Central in Singapore.
"It (cutting of tariffs) is countered by how the virus is
going to affect the economy, businesses and China's GDP."
China on Thursday said it would halve additional tariffs
levied against 1,717 U.S. goods last year, following the signing
of a Phase 1 deal that brought a truce to a bruising trade war
between the world's two largest economies.

Positive data from the United States including a rise in
January private payrolls and services sector activity were also
keeping gold prices in check. Asian stocks gained after China's announcement to cut
tariffs on U.S. goods and U.S. stocks hit a record peak on
encouraging U.S. data. MKTS/GLOB
The dollar .DXY hit a two-month high earlier in the
session, making gold expensive for holders of other currencies.
USD/
The World Health Organization on Wednesday played down
reports of "breakthrough" drugs being discovered to treat people
infected with the new coronavirus. "The virus spreading into new areas and new countries at
alarming rates could bring real support to gold prices," said
Michael McCarthy, chief market strategist at CMC Markets.
Spot gold may rise into a range of $1,564 to $1,570 per
ounce, as it has stabilised around a support at $1,549, said
Reuters technical analyst Wang Tao. TECH/C
Palladium XPD= fell 1.1% to $2,405.80 an ounce and silver
XAG= rose 0.6% to $17.71. Platinum XPT= was down 0.3% to
$978.46, after touching a one-week high of $987.60 earlier in
the session.