(Adds comment, updates prices)
* Gold/silver ratio highest in almost 30 years
* Palladium sheds 7%
* Platinum on track for worst week since 2010
* Coronavirus interactive graphic: https://tmsnrt.rs/2GVwIyw
By Harshith Aranya
Feb 28 (Reuters) - Gold slid more than 1% to its lowest in a
week on Friday as the recent price rallies prompted investors to
take profits, but the metal was still on track for a third
consecutive monthly gain as the spread of coronavirus gathered
pace.
Spot gold XAU= was down 1% to $1,623.51 per ounce at 1424
GMT, having surged as much as 1.3% in the last session. U.S.
gold futures GCcv1 slipped 1.1% to $1,625 per ounce.
"There's a bit of profit-taking in gold," Bank of China
International analyst Xiao Fu said, adding she was "not
surprised to see some correction from time to time especially
when you have excessive build-ups."
Gold has added around 2% so far this month, having hit a
7-year high of $1,688.66 earlier this week as coronavirus
spooked markets.
"The market is pricing in three cuts (in U.S. interest
rates) by the end of this year and that's increased from one cut
(expected) earlier. So, the sentiment has shifted and with lower
U.S. yields, we should see gold prices be very supported," Fu
said.
Four more countries reported their first virus cases, with
countries other than China now accounting for about
three-quarters of new infections. The virus scare sent world share markets plunging again on
Friday, compounding their worst week since the 2008 global
financial crisis. MKTS/GLOB
"One might imagine that there would be robust demand for
gold in this environment, yet precisely the opposite is true
this morning," Commerzbank analysts wrote in a note.
"We attribute this to forced selling aimed at offsetting
losses elsewhere."
Other precious metals also declined, with palladium XPD=
sliding 7.1% to $2,642.24 per ounce.
"When sentiment is ruled by fear, investors always rush to
cash and liquidity, and also sell profitable investments due to
margin calls or to cover other investment losses," said Samson
Li, a Hong Kong-based precious metals analyst at Refinitiv GFMS.
Palladium jumped to a record $2,875.50 on Thursday due to a
sustained supply shortfall.
The auto-catalyst metal was on track to gain for the seventh
consecutive month.
Platinum XPT= shed 3.7% to $865.35, en route to its worst
weekly fall since 2010.
Silver XAG= fell 3.5% to $17.08 an ounce, on track for its
worst month in three.
"The gold/silver ratio has risen... to 95, meaning that
silver is lower vis-à-vis gold than at any time in almost 30
years," Commerzbank said.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Gold/Silver ratio https://tmsnrt.rs/2I2COO3
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>