PRECIOUS-Gold scales two-week high as coronavirus hits business

(Updates prices)
* Spot gold hits highest since Feb. 3
* World stocks knocked off record highs
* Gold in euros hits record peak of 1,468.54 euros/oz
* Palladium touches near one-month peak of $2,546/oz

By Sumita Layek
Feb 18 (Reuters) - Gold climbed to a two-week high on
Tuesday as investors sought safe havens after a revenue warning
from iPhone maker Apple AAPL.O due to coronavirus,
exacerbating fears of the outbreak's impact on global economic
growth.
Spot gold XAU= was up 0.4% at $1,586.63 per ounce by 1257
GMT, having earlier risen to its highest since Feb. 3 at
$1,589.40. U.S. gold futures GCcv1 inched up 0.2% to
$1,589.70.
"We're seeing some renewed weakness in the stock markets
following the announcement by Apple ... it highlights that this
(coronavirus epidemic) is not just an isolated event unfolding
in China," said Saxo Bank analyst Ole Hansen.
"It's having a global impact on supply chains and shipments,
this will have a negative impact on growth expectations," Hansen
added.
Gold is considered a hedge against risks from political and
economic turmoil.
Apple's warning that its sales would fall short sent
shockwaves across markets and knocked global equities off their
recent record highs. .EU MKTS/GLOB
Manufacturing facilities in China that produce Apple's
iPhone and other electronic goods have begun to reopen but are
ramping up more slowly than expected, Apple said.
China had to extend Lunar New Year holidays, shut
businesses, impose lockdowns and restrict transport to try to
contain the outbreak.
Investors remain concerned about the further spread of the
virus even as the number of new cases slowed, falling below
2,000 as of Monday. Meanwhile, gold in euros XAUEUR=R hit an all-time peak of
1,468.54 euros per ounce.
The dollar .DXY rose to a more than four-month high
against key rivals, also gaining from safe-haven interest.
USD/
"Dollar and gold are negatively correlated, but at this
moment even though the dollar is moving higher, gold is moving
higher, and that means demand for safety is outweighing the
currency impact on gold," CMC Markets analyst Margaret Yang Yan
said.
Elsewhere, palladium XPD= gained 0.5% to $2,534.93 an
ounce after hitting a near one-month peak of $2,546 earlier in
the session.
"This can be only partly explained by the ongoing production
problems in South Africa due to power supply disruptions and
this year's renewed high supply deficit," Commerzbank analysts
said in a note.
Silver XAG= rose 0.6% to $17.86, while platinum XPT= was
up 1% to $978.10.

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