PRECIOUS-Gold holds near 2-week high on uncertainty over virus impact

(Updates prices)
* Asian shares move back towards three-week high
* Dollar holds near four-month high
* Virus death toll in China up by 105 as of Sunday
* Specs raise bullish positions in gold in week to Feb. 11

By K. Sathya Narayanan
Feb 17 (Reuters) - Gold prices on Monday held near a
two-week high scaled in the previous session as uncertainty
prevailed over the impact of the coronavirus outbreak on the
global economy.
Spot gold XAU= was little changed at $1,582.08 per ounce,
as of 0701 GMT, having touched its highest since Feb. 3 at
$1,584.65 on Friday. U.S. gold futures GCv1 were down about
0.1% at $1,585.30.
"Gold is holding firm at high prices as uncertainty around
coronavirus remains high, while the economic impact is still
unclear," said Michael McCarthy, chief market strategist at CMC
Markets.
The death toll from the outbreak in mainland China reached
1,770 by Sunday, up by 105 from the previous day, the country's
National Health Commission. "Given the extent of the impact of the coronavirus in China,
gold physical demand is likely to suffer. (But) it is too early
to estimate the effects," UBS said in a note dated Feb. 14.
Premiums for physical gold in China, the world's biggest
bullion consumer, slid to their lowest since at least July 2018
last week. GOL/AS
The epidemic pushed Singapore to downgrade its 2020 economic
growth forecast, while a Reuters poll showed Japanese
manufacturers remained pessimistic in February.

The U.S. Federal Reserve had also flagged concerns regarding
the potential impact on the U.S. economy.
Cleveland Fed Bank President Loretta Mester said on Friday
the epidemic could be a drag on the U.S. economy this quarter.
"Sentiment is friendly and there is an underlying bias to be
long. For now, investors wait for fresh catalysts and/or more
attractive levels to reengage," UBS said in the note.
Speculators increased their bullish positions on COMEX gold
in the week to Feb. 11. Asian shares, however, moved back toward a three-week high
on China's efforts to cushion the blow from the virus, while the
dollar .DXY hovered near a more-than four-month high.
MKTS/GLOB USD/
"The dollar normally works against the gold price, but the
fact that gold did rise despite that goes to say that it
(dollar) doesn't have much impact on gold at the moment," CMC's
McCarthy said, adding, the strong technical resistance of $1,590
is "limiting the enthusiasm in the market."
Elsewhere, palladium XPD= rose 0.6% to $2,446.39 an ounce,
silver XAG= was up 0.6% at $17.83, while platinum XPT=
gained 0.6% to $968.69.
Trading is expected to be light as financial markets in the
United States will be shut for a public holiday.