PRECIOUS-Gold slips as dollar gains and China steps up virus countermeasures

(Recasts, updates prices)
* China coronavirus death toll climbs to 9, total infections
440
* Physical gold demand into Chinese New Year weak
-strategist

By Asha Sistla
Jan 22 (Reuters) - Gold prices slipped on Wednesday as the
dollar firmed and Chinese health officials said they had stepped
up protective measures in hospitals to counter the new
coronavirus that has raised fears of a global pandemic.
Spot gold XAU= fell 0.2% to $1,554.54 an ounce by 0758
GMT, extending losses that took prices to their lowest since
Jan. 15 in the previous session at $1,545.96.
U.S. gold futures GCv1 were down 0.3% at $1,553.80.
Asian stock markets bounced on China's comments on the
virus, though worries remain over the potential negative impact
on domestic demand and tourism. MKTS/GLOB The death toll from the new flu-like coronavirus in China
rose to nine on Wednesday with 440 confirmed cases, Chinese
health officials said as authorities stepped up efforts to
control the outbreak by discouraging public gatherings in Hubei
province ahead of Lunar New Year celebrations. The week-long holiday is a peak period for travel and gold
demand in China.
"The dollar is steady and there is apprehension that there
will be less gold demand from China in the current year," said
Hareesh V, head of commodity research at Geojit Financial
Services.
China's gold consumption fell for the first time in three
years in 2019, data showed on Tuesday, as high prices and an
economic slowdown hit buying in the world's biggest market for
the metal. The dollar .DXY firmed against a basket of currencies,
making gold more expensive for holders of other currencies.
USD/
"Gold is struggling to gain momentum as positive equity
market sentiment builds," Stephen Innes, chief market strategist
at AxiCorp, said in a note.
"Hedge funds remain on the sidelines and sovereign accounts
that were active at the start of the year seem to be absent ...
physical demand into the Chinese Lunar New Year is weak."
On the technical front, spot gold could revisit its Jan. 14
low of $1,535.63, said Reuters technical analyst Wang Tao.
TECH/C
Among other precious metals, palladium XPD= jumped 1.7% to
$2,442.61 an ounce, silver XAG= edged up by 0.1% to $17.78 and
platinum XPT= gained 0.3% to $1,001.68.