PRECIOUS-Gold eases on profit-taking, virus scare limits losses

(Adds comment and updates prices)
* Death toll from China virus rises to 427
* Dollar firm on recovery in U.S. factory activity
* Spot gold in neutral range of $1,573-$1,582/oz -
technicals

By Asha Sistla
Feb 4 (Reuters) - Gold eased on Tuesday as investors booked
profits after a near four-week high in the last session, but
concerns about a rapidly spreading virus outbreak in China and
its economic impact underpinned the precious metal.
Spot gold XAU= was down 0.2% at $1,572.87 per ounce by
0751 GMT, after hitting $1,591.46 in the previous session, its
highest since Jan. 8. U.S. gold futures GCcv1 fell 0.3% to
$1,577.20.
"Profit-booking is the main reason for gold to be down, as
other factors have already been priced in," said Ajay Kedia, a
director of Kedia Advisory in Mumbai, referring to the U.S.-Iran
tension and Brexit.
"Secondly, global equities started moving on the positive
side. (The gold) market is due for a correction and this can
drag prices to the $1,545 to $1,550 level again."
Further weighing on the metal, the dollar .DXY held firm
against a basket of rival currencies, after a gain of 0.4% in
the previous session.
Monday's gain was the greenback's biggest since Jan. 2,
boosted by a U.S. manufacturing survey that showed a rebound in
January factory activity after five straight months of
contraction, amid a surge in new orders. USD/ Asian stocks gained ground even as the virus onslaught of
the past few days inspired cautions among investors. MKTS/GLOB
"It is the uncertainty around coronavirus that continues to
be supportive for gold prices," said ING analyst Warren
Patterson, adding that the metal would be fairly well-supported
until the impact on the Chinese and global economy became
clear.
"Still (we) see a general shift to safe-haven assets,
reflected in ETF holdings with sizeable inflows that demonstrate
the uncertainty in the market," Patterson said. GOL/ETF
Hong Kong reported its first coronavirus death, the second
fatality outside mainland China from an outbreak that has killed
427 people, while Beijing allowed in U.S. health experts to help
fight the flu-like virus. The outbreak has prompted traders to begin pricing in a U.S.
interest rate cut by June, but has not swayed the views of
Atlanta Federal Reserve Bank President Raphael Bostic.
Gold is considered a safe store of value during economic and
political uncertainty.
Among other precious metals, palladium XPD= jumped 2.4% to
$2,375.97 an ounce, silver XAG= rose 0.6% to $17.75, and
platinum XPT= climbed 0.8% to $974.32.