PRECIOUS-Gold gains on virus spread, rate cut hopes; palladium surges to record

(Adds graphics, updates prices)
* Platinum touches over 2-month low, silver near 1-week
trough
* Palladium hits record high at $2,847.50/oz
* GRAPHIC-2020 asset returns: http://tmsnrt.rs/2jvdmXl
* Coronavirus interactive graphic: https://tmsnrt.rs/2GVwIyw

By Shreyansi Singh
Feb 27 (Reuters) - Gold prices rose on Thursday as the rapid
spread of coronavirus outside China fuelled demand for
safe-haven assets and bolstered bets for interest rate cuts by
major central banks, while palladium scaled an all-time high on
supply deficit worries.
Spot gold XAU= rose 0.6% to $1,648.63 per ounce by 0836
GMT. Prices jumped more than 1% in intraday trade on Wednesday
before closing 0.3% higher.
U.S. gold futures GCcv1 were up 0.5% at $1,650.50.
"Safe-haven demand is strong at the moment on the global
economic impact of the coronavirus. There are growing
expectations that central banks will certainly need to take
action if it continues to spread, particularly outside China,"
ANZ analyst Daniel Hynes said.
Governments ramped up measures on Thursday to battle the
coronavirus as the number of infections outside China, the
source of the outbreak, for the first time surpassed those
appearing inside the country. U.S. health authorities, managing 59 cases so far, warned of
the potential for a pandemic, although President Donald Trump
said the risk from coronavirus remained "very low".

Oil and Asian share markets slipped on Thursday, as
investors sought safety in gold and bonds, while U.S.
Treasuries rallied into record territory on concerns over the
global spread of the coronavirus. MKTS/GLOB US/
Investors, meanwhile, have increased bets for a rate cut by
the U.S. Federal Reserve to ease the impact on the economy,
according to an analysis of Fed funds futures compiled by the
CME Group FEDWATCH .
Money markets have also priced in cuts by the European
Central Bank and the Bank of England. "Markets are already pricing in some decent cuts to rates
across the globe so that's the clear driver of (gold) prices and
demand," ANZ's Hynes said.
Lower interest rates reduce the opportunity cost of holding
non-yielding bullion.
Among other precious metals, palladium rose 0.7% to
$2,807.65 per ounce, after hitting a record high of 2,847.50
earlier in the session.
A correction in palladium prices is likely but the metal is
rallying on deficit concerns and overall positive sentiment in
precious metals, said Jigar Trivedi, a commodities analyst at
Anand Rathi Shares and Stock Brokers in Mumbai.
Platinum XPT= rose 0.6% to $916.56, having earlier slid to
its lowest level since December.
Silver XAG= gained 1.0% to $18.05 an ounce, after touching
a one-week low in the previous session.

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Gold and risk assets https://tmsnrt.rs/3cfwKzx
Palladium and platinum https://tmsnrt.rs/3addeSn
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