PRECIOUS-Gold gains on epidemic fears, eyes best month in five

(Updates prices)
* WHO opposes restrictions on travel or trade with China
* Virus fears ensure break below $1,560 in gold unlikely-
analyst
* Palladium set to post best monthly gain since November
2016
* Platinum on track to decline 2.5% this week

By Diptendu Lahiri
Jan 31 (Reuters) - Gold prices edged higher on Friday and
were on track for their biggest monthly gain in five, as
concerns of an economic slowdown arising from the coronavirus
epidemic kept the safe-haven metal supported.
Spot gold XAU= rose 0.4% to $1,580.07 per ounce by 1324
GMT. The metal has gained 4% so far this month, on course for
its best month since August. U.S. gold futures GCcv1 declined
0.2% to $1,579.60.
The World Health Organization on Thursday declared the
coronavirus outbreak a global emergency but was opposed to
restrictions on travel or trade with China and showed confidence
that China could contain it. "The virus and its potential to impact the global economy
negatively is keeping gold supported," Saxo Bank analyst Ole
Hansen said.
"However, the lack of fresh buying is keeping the metal from
moving up even though uncertainties around coronavirus is
affecting other markets like the equities."
The virus, which has claimed 213 lives so far in China and
has spread to at least 22 countries, has brought a halt to many
provinces in the world's second-largest economy with lockdowns,
travel restrictions and closed businesses. World share markets fought to regain their footing as
investors clutched at hopes that China could contain the
coronavirus. MKTS/GLOB
"At this point, it (impact from the virus) is not something
the Chinese economy can shrug off, there will be a hit to
growth, the magnitude of which will be difficult to chisel out
in detail for quite a while," said Ilya Spivak, a senior
currency strategist at DailyFx.
Meanwhile, surveys showed steady Chinese factory activity
and firm services this month, though this was likely before the
virus took full hold.
"Wuhan fears should ensure that a break below $1,560 is very
unlikely ahead of the weekend," Jeffrey Halley, senior market
analyst at OANDA, said in a note.
In Europe, the United Kingdom will leave the European Union
an hour before midnight. Palladium XPD= was down 0.7% to $2,294.46. Prices were set
to gain 18% this month, the best since November 2016, but were
down 5.5% this week.
Silver XAG= was little changed at $17.82 but was down 1.5%
for the week, the worst since the week ended Dec. 6. Platinum
XPT= fell 1.4% to $963.62, and was on track to decline 3.7%
for the week, its steepest since early November.