PRECIOUS-Gold rises on pandemic fears; palladium scales new peak

(Updates prices)
* Global stocks slide, U.S. 10-yr Treasury yields hit record
low
* Nornickel expects palladium deficit of 0.9 mln oz in 2020
* GRAPHIC-2020 asset returns: http://tmsnrt.rs/2jvdmXl
* Coronavirus interactive graphic: https://tmsnrt.rs/2GVwIyw

By Sumita Layek
Feb 27 (Reuters) - Gold prices gained on Thursday as rising
cases of coronavirus beyond China exacerbated fears of a
pandemic and its broader economic impact, boosting hopes for
interest rate cuts by major central banks and demand for safe
haven assets.
Palladium notched up an all-time high, driven by short
supplies of the auto-catalyst metal.
Spot gold XAU= rose 0.6% to $1,650.12 per ounce by 1237
GMT, having jumped as much as 1% in the previous session. U.S.
gold futures GCcv1 were also up 0.6% at $1,652.30.
"The global panic around the coronavirus outbreak is pulling
equity markets down, while all the funds are coming to safe
havens ... there are few places to hide, and gold is one of the
best alternatives," said Hussein Sayed, chief market strategist
at FXTM.
"If the coronavirus doesn't take a U-turn then $1,700 is
just a matter of time and even higher prices (are on the
cards)."
Global stocks plunged, while U.S. 10-year Treasury yields
US10YT=RR hit a record low as governments ramped up measures
to battle a looming global pandemic of the coronavirus.
MKTS/GLOB US/
A number of new coronavirus infections in other countries
overtook China - the source of the outbreak for the first time,
raising fears of a wider spread. A U.S. Food and Drug Administration official warned of the
potential for a global pandemic as the country managed 59 cases,
although President Donald Trump said the country was in "great
shape" to handle a looming health crisis.
The potential global economic impact from the epidemic has
also led investors to boost bets for a rate cut by the U.S.
Federal Reserve FEDWATCH and several major central banks.
Lower interest rates reduce the opportunity cost of holding
non-yielding bullion.
Among other precious metals, palladium hit an all-time
record peak of $2,847.50 per ounce, and was last down 2.2% to
$2,728.69.
"It's partially connected to the statements of Norilsk
Nickel and Impala Platinum suggesting a very strong deficit
market once again in 2020. So we are heading to the ninth
consecutive year of deficit and prices will remain supported on
that," said UBS commodities analyst Giovanni Staunovo.
Nornickel, the world's largest palladium producer, said it
expects to see a deficit in the global palladium market of 0.9
million ounces in 2020. Platinum XPT= rose 0.5% to $915.38, after touching its
lowest since December, while silver XAG= gained 0.9% to $18.04
an ounce.

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Gold and risk assets https://tmsnrt.rs/3cfwKzx
Palladium and platinum https://tmsnrt.rs/3addeSn
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