PRECIOUS-Gold inches higher on virus concerns; set for monthly gain

(Recasts, updates prices and adds comment)
* WHO opposes restrictions on travel or trade with China
* Virus fears ensures 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 Sumita Layek
Jan 31 (Reuters) - Gold prices inched higher on Friday and
were set to post their biggest monthly gain in five, as the
coronavirus epidemic fuelled economic slowdown concerns, despite
the World Health Organization's confidence that the outbreak
could be controlled.
Spot gold XAU= rose 0.2% to $1,576.28 per ounce by 0756
GMT. The metal has gained 3.9% so far this month, on course for
its best month since August. U.S. gold futures GCv1 declined
0.6% to $1,580.10.
The WHO on Thursday declared the coronavirus outbreak a
global emergency, however, it opposed restrictions on travel or
trade with China and said the actions taken by Beijing can
"reverse the tide". "Even as we saw some improvement in economic data and the
WHO statement (showed confidence in China)... they are yet to
come out with any vaccine for coronavirus," said Vandana Bharti,
assistant vice-president of commodity research at SMC Comtrade.
"Underlying fears are there and dips will be used as a
buying opportunity," she said.
The new coronavirus has claimed 213 lives so far in China
and has spread to at least 22 countries, while paralysing many
provinces in the world's second-largest economy with lockdowns,
travel restrictions and closed businesses. "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.
Surveys showed steady Chinese factory activity and firm
services this month, though this was likely before the virus
took full hold.
Gold is considered a safe haven in times of political and
economic uncertainty.
"Critical support remains in the $1,545-$1,550 regions with
resistance at $1,585 and $1,600 an ounce. 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.
Palladium XPD= lost 0.4% to $2,302 an ounce. Prices were
set to gain 18% this month, the best since November 2016, but
were down 5.5% this week.
Silver XAG= rose 0.2% to $17.86 and was down 1.1% for the
week, its worst since the week ended Dec. 6. Platinum XPT=
shed 0.1% to $976.63, and was on track to decline 2.5% for the
week, its steepest since early November.