PRECIOUS-Gold jumps over 2% as virus spread spurs safe-haven demand

(Adds graphic and updates prices)
* Gold hits highest in more than seven years
* Global equities extend losses, dollar gains
* U.S. 10-yr Treasury yield falls to lowest since July 2016
* Coronavirus interactive graphic: https://tmsnrt.rs/2GVwIyw

By K. Sathya Narayanan
Feb 24 (Reuters) - Gold prices climbed more than 2% on
Monday to their highest since February 2013, as spikes in
coronavirus cases in several countries outside China deepened
worries about a hit to the global economic growth, prompting a
flight to safe havens.
Spot gold XAU= was up 1.6% at $1,669.80 per ounce by 0713
GMT, after climbing to $1,678.58 earlier in the session. U.S.
gold futures GCcv1 rose 1.5% to $1,672.80.
"The thinking is that fewer people are holding shares,
selling down in particular, and that money has to fall into
havens," said Michael McCarthy, chief market strategist at CMC
Market.
"The impact on the global economy also means we will likely
see a lower interest rate environment for longer."
Lower interest rates reduce the opportunity cost of holding
non-yielding bullion.
Global equities extended losses as concerns about the spread
of the virus beyond China grew with sharp rises in infections in
Italy and Iran, while South Korea raised its infectious disease
alert to its highest level. MKTS/GLOB
The World Health Organization said it is worried about the
growing number of cases without any clear link to
China. "Gold has finally established some serious momentum, and
more negative coronavirus headlines will see a test of $1,700 an
ounce on (safe-)haven flows, sooner rather than later," Jeffrey
Halley, senior market analyst at OANDA, said in a note.
Among other safe havens, the U.S. dollar .DXY edged
higher, while the benchmark U.S. 10-year Treasury yield
US10YT=RR fell to its lowest since July 2016. USD/ US/
The Japanese yen JPY= further backed away from its lowest
since April 2019 against the U.S. currency.
Apart from speculative positioning, financial uncertainty
and low interest rates are also bolstering demand for gold,
Phillip Futures analysts said in a note.
Speculators raised their bullish positions on COMEX gold and
silver contracts in the week to Feb. 18, the U.S. Commodity
Futures Trading Commission (CFTC) said on Friday. CFTC/
Among other precious metals, palladium XPD= was flat at
$2,703.31 per ounce. Silver XAG= rose 1.4% to $18.71 an ounce,
while platinum XPT= fell 0.4% to $969.41.

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