Feb 3 (Reuters) - Gold eased on Monday after scaling a near
four-week peak, as China's central bank injected liquidity into
its markets to help support firms hit by a coronavirus epidemic,
with a stronger dollar holding back bullion as well.
Chinese authorities have pledged to use various monetary
policy tools to ensure liquidity remains reasonably ample and to
support firms affected by the outbreak in Wuhan, which has so
far claimed more than 350 lives.
FUNDAMENTALS
* Spot gold XAU= fell 0.4% to $1,582.82 per ounce by 0145
GMT, having gained more than 1% in the previous session. U.S.
gold futures GCv1 edged higher by 0.1% to $1,588.80.
* The coronavirus epidemic has claimed 361 lives so far in
China, and a first death outside of the country was reported in
the Philippines, as investors braced for volatility in Chinese
markets as they reopen after the Lunar New Year break.
* China's central bank said it will inject 1.2 trillion yuan
($174 billion) worth of liquidity into the markets via reverse
repo operations on Monday. * The dollar also firmed on Monday making gold expensive for
holders of other currencies. USD/
* Asian markets slid on fears over the hit to world growth
from the rapidly spreading coronavirus. MKTS/GLOB * China's factory activity expanded at its slowest pace in
five months in January, with the virus adding to the risks
facing the world's second-largest economy, a private survey
showed on Monday.
* Total gold imports by top consumer China more than trebled
in December 2019 from the previous month, but were down 28% on a
yearly basis, data from the country's customs website showed on
Friday. * Physical gold markets in major Asian hubs saw activity
dwindle last week as the coronavirus epidemic took a toll on
demand, especially with China out of action. GOL/AS
* Hedge funds and money managers cut their bullish positions
in COMEX gold contracts in the week to Jan. 28, data showed on
Friday. CFTC/
* Holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust GLD fell 0.03% to 903.21
tonnes on Friday. GOL/ETF
* Palladium XPD= rose 0.4% to $2,286.71 an ounce, silver
XAG= fell 0.7% to $17.91, and platinum XPT= rose 0.7% to
$963.27.
DATA/EVENTS (GMT) (January)
0500 India IHS Markit Mfg PMI
0850 France Markit Mfg PMI
0855 Germany Markit/BME Mfg PMI
0900 EU Markit Mfg Final PMI
0930 UK Markit/CIPS Mfg PMI Final
1400 US ISM Manufacturing PMI
1445 US Markit Mfg PMI Final