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PRECIOUS-Gold rises as coronavirus fuels global slowdown worries

Published 02/28/2020, 09:38 AM
Updated 02/28/2020, 09:40 AM
© Reuters. PRECIOUS-Gold rises as coronavirus fuels global slowdown worries
USD/JPY
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GC
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US10YT=X
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Feb 28 (Reuters) - Gold prices inched higher on Friday as
worries intensified that the rapidly spreading coronavirus could
turn into a pandemic and derail global economic growth.

FUNDAMENTALS
* Spot gold XAU= gained 0.2% to $1,645.79 per ounce by
0055 GMT, and was up about 0.1% for the week.
* U.S. gold futures GCv1 rose 0.1% to $1,644.20.
* Global share prices headed for the worst week since the
world financial crisis in 2008 as investors braced for the virus
to become a pandemic and rapidly spread around the world.
MKTS/GLOB
* The Japanese yen JPY= rose to its highest in more than
three weeks against the U.S. dollar, while benchmark U.S.
10-year Treasury yields US10YT=RR held close to record lows
touched in the previous session.
* Mainland China had 327 new confirmed cases of infections
on Thursday, the National Health Commission said on Friday, down
from 433 cases a day earlier. * Iran said on Thursday its death toll rose to 26, by far
the highest number outside China, and the total number of
infected people stood at 245, including several senior
officials. * Moody's Analytics said a pandemic would result in global
and U.S. recessions during the first half of this year, while
rate cuts by the Federal Reserve might fall short of stabilising
markets. * The Fed may need to move aggressively to cut borrowing
costs to cushion the economy from the effects of the virus, CME
Group's FedWatch indicated. FEDWATCH * Four European Central Bank policymakers played down the
prospect of immediate action to counter the economic impact of
the virus, saying it was too early to gauge the long-term
implications of the disease. * Palladium XPD= slipped 0.1% to $2,840.73 an ounce, but
was on track to post its fourth straight weekly gain.
* Platinum XPT= was down 0.2% to $897, and was headed for
its worst week since November 2015.
* Silver XAG= rose 0.6% to $17.81 per ounce, but was on
track to post a weekly decline.

DATA/EVENTS (GMT)
0700 UK Nationwide house price MM, YY (Feb)
0745 France GDP QQ Final (Q4)
0745 France CPI (EU Norm) Prelim YY (Feb)
0855 Germany Unemployment Change SA (Feb)
0855 Germany Unemployment Rate SA (Feb)
1300 Germany CPI, HICP Prelim MM, YY (Feb)
1330 U.S. Consumption, adjusted MM (Jan)
1500 U.S. U Mich Consumer Sentiment Final (Feb)

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