(Adds graphic, updates prices)
* Platinum, palladium trim gains after rising over 5%
* Asian shares fall in volatile trade
* SPDR gold holdings fall 0.2% on Monday
By K. Sathya Narayanan
March 17 (Reuters) - Gold prices fell almost 2% on Tuesday,
extending losses from the previous session's meltdown, as
investors continued to sell assets to keep their money in cash
because of heightened concerns over the economic toll of the
coronavirus outbreak.
Autocatalyst metals platinum and palladium rose more than 5%
each in early trade before paring gains. The metals were the
worst hit in Monday's free fall since they are also considered
industrial metals.
Spot gold XAU= fell 1.8% to $1,487.36 per ounce by 0757
GMT, having slumped as much as 5.1% on Monday to its lowest
since November 2019. U.S. gold futures GCcv1 gained 0.1% to
$1,488.
"This is just a continuing trend of gold positions being
liquidated as equity markets collapse. There is a trend towards
holding cash in the market and that's being reflected in gold,"
said Jeffrey Halley, a senior market analyst at OANDA.
"With the meltdown in asset markets, it's clear that
longer-term gold, silver and palladium holders are liquidating
profitable positions to cover losses elsewhere."
Asian shares held their ground on Tuesday in volatile trade
following one of Wall Street's biggest one-day routs in history
as headlines about the outbreak and its global economic impact
whiplashed investor sentiment. MKTS/GLOB Countries and major central banks have ramped up measures to
protect their economies from the outbreak, which has infected
more than 174,100 people globally.
The U.S. Federal Reserve slashed rates back to near zero in
a surprise move on Sunday, to support a rapidly deteriorating
global economy.
With a lot of risks in the market, which should have been
supportive for bullion, the Fed hit the panic button, signalling
concerns over the economic recovery, said Stephen Innes, chief
market strategist at AxiCorp.
"But we have to weigh it with the fact that equities are
probably going to fall further as the economic damage is going
to come out worse than expected. So, bad news and good news is
both bad for gold right now," he said.
Holdings in the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust GLD , fell 0.2% to 929.84 tonnes on
Monday.
Among other precious metals, palladium XPD= was down 0.5%
at $1,609.09 per ounce, having plummeted as much as 18% in the
previous session.
Platinum XPT= slid 0.3%, to $661, having posted its
biggest one-day percentage decline ever on Monday.
Silver XAG= fell 1.2% to $12.75, after touching its lowest
since 2009 in the last session.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Precious metals extend slide https://tmsnrt.rs/2Uq5xlV
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>