PRECIOUS-Gold steady as investors opt for cash amid deepening virus fears

(Updates prices)
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Global coronavirus death toll nearly 34,000
* Graphic - Coronavirus unknowns: https://reut.rs/2UHIgvz

By Asha Sistla
March 30 (Reuters) - Gold prices held steady on Monday as a
flight to cash to cover losses in equities overshadowed measures
by global central banks to contain the economic fallout from the
coronavirus pandemic.
Spot gold XAU= was little changed at $1,617.13 per ounce
by 0820 GMT after Friday's 0.7% drop. U.S. gold futures GCv1
fell 0.4% to $1,646.70 per ounce.
"The worse the situation gets the stronger the link between
stocks and gold, because if we see further economic
deterioration that will drag gold down with the share markets,"
said Michael McCarthy, chief strategist at CMC Markets.
Asian shares slid and oil prices took another tumble on
worries that shutdowns related to the outbreak could last for
months. MKTS/GLOB
The pandemic has already driven the global economy into
recession and countries must respond with "very massive"
spending to avoid a cascade of bankruptcies and emerging market
debt defaults, the head of the International Monetary Fund
warned on Friday. Central banks have started all-out efforts to bolster
activity with rate cuts and massive asset-buying campaigns, with
China, Singapore and New Zealand being the latest additions.
The U.S. House of Representatives on Friday approved a $2.2
trillion aid package — the largest in history — to help cope
with the virus-inflicted economic downturn. The weekend brought more bad news on the outbreak front,
with the global death toll reaching nearly 34,000. Deaths in the
United States crossed 2,400 and infected cases rose beyond
141,000. Weighing on gold was a halt in the dollar's slide that came
with a broader risk-averse mood, after the greenback surged amid
a scramble for cash and then subsided as central banks launched
unprecedented liquidity measures. USD/
"The U.S. fiscal stimulus package is positive for the dollar
and probably an element of that is coming through the moment.
There is negative correlation between the dollar index and gold
prices," IG Markets analyst Kyle Rodda said.
Holdings in the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust GLD , rose 1.2% to 964.66 tonnes on
Friday. GOL/ETF
"I wouldn't say gold's status as safe-haven is over, but if
things continue to deteriorate economically it could become a
funding source and that will offset its safe haven status," said
CMC Markets' McCarthy.
Palladium XPD= fell 2.6% to $2,210.94 per ounce, platinum
XPT= slipped 2.6% to $715.36, while silver XAG= slid 3.3% to
$13.99.