(Updates prices, adds comments and details)
* Gold priced in euros, pound slide from record highs
* Coronavirus interactive graphic: https://tmsnrt.rs/2GVwIyw
By Swati Verma
Feb 25 (Reuters) - Gold fell over 1% on Tuesday as the
metal's rally to 7-year highs in the last session prompted
profit-taking even as worries about the coronavirus kept
investors anxious about the fate of global economy.
Spot gold XAU= slipped about 1% to $1,644.40 per ounce by
01:56 p.m. EST (1856 GMT). U.S. gold futures GCcv1 settled
down 1.6% at $1,650.
On Monday, the metal surged as much as 2.8% to $1,688.66,
its highest since January 2013.
"Today's move is merely a pause in the midst of an upswing,"
said David Meger, director of metals trading at High Ridge
Futures, adding investors were booking profits after the
"dramatic rise on Monday." MKTS/GLOB
"The pillars of support for gold remain to be low rates by
major central banks. Funds have been diversifying profit away
from equity portfolios into the gold markets."
Mainland China had 508 new confirmed cases, up from 409 on
Feb. 23, bringing the total confirmed cases to 77,658.
The rapid spread of the virus beyond China has heightened
fears over its impact on the global economy, driving some bets
that the U.S. Federal Reserve will be pressed to cut interest
rates to cushion the hit. "The market is most certainly already in the process of
pricing in additional rate cuts in the U.S., where the
speculation about the March cut has started to attract some
attention," said Saxo Bank analyst Ole Hansen.
However, "the dollar could strengthen even further which
slows gold's approach, but major central banks are most
certainly trying to do what they can to support the economies."
Countries around the world are stepping up efforts to stop a
pandemic of the virus that emerged in China and is spreading in
Europe and the Middle East. "With the virus spreading to other regions, and if China
experiences a relapse and the drags on growth extend into April,
gold could move to $1,650–1,700 per ounce," UBS analysts wrote
in a note.
Gold in euros XAUEUR=R and gold priced in sterling
XAUGBP=R slid from all-time peaks hit on Monday.
Among other precious metals, palladium XPD= jumped 3% to
$2,707 per ounce.
Silver XAG= fell 2.3% to $18.20 an ounce, having touched
its highest since early September on Monday. Platinum XPT=
slid 3.3% to $931.7.
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Gold technicals https://tmsnrt.rs/2SWt2Dy
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