PRECIOUS-Gold steadies after previous day's rally on Fed cut

(Updates prices)
* Fed makes first emergency rate cut since 2008
* U.S. ISM non-mfg PMI data, Fed's Beige Book awaited
* GRAPHIC-2020 asset returns: http://tmsnrt.rs/2jvdmXl

By Harshith Aranya
March 4 (Reuters) - Gold was little changed on Wednesday, a
day after its biggest percentage gain since June 2016 on the
U.S. Federal Reserve's surprise rate cut, as traders awaited
further direction from other major central banks and
governments.
Spot gold XAU= was up 0.1% to $1,641.05 per ounce at 1326
GMT, while U.S. gold futures GCcv1 slipped 0.1% to $1,642.10.
Gold surged as much as 3.7% on Tuesday after the U.S.
central bank cut interest rates by 50 basis points, in an
emergency move to help cushion the economic damage caused by the
coronavirus outbreak.
"The market is probably waiting for additional potential
announcements from other central banks ... the stock market has
recovered a little bit, and that's (leading to) some profit
taking in gold," said Saxo Bank analyst Ole Hansen.
"Cutting rates was probably a wrong decision because it also
leaves the Fed with even less ammunition for future cuts ... the
market is based on the assumption that it's a small plaster on
the big wound and it's not going to help in the short term."
This was the Fed's first cut outside of a scheduled meeting
since the 2008 financial crisis. Lower interest rates reduce the
opportunity cost of holding non-yielding bullion. European equities rose as traders hoped the European Central
Bank and euro zone governments would provide more stimulus after
the Fed's move. MKTS/GLOB
The dollar index .DXY recovered from a two-month low hit
in the last session, capping bullion's gains. USD/
"I think the reason why gold isn't doing very much (today)
is because across the spectrum of the financial assets nobody's
really quite sure what the immediate, or for that matter the
medium-term, outlook is," INTL FCStone analyst Rhona O'Connell
said.
Euro zone businesses largely withstood the impact of the
coronavirus in February, though a survey on Wednesday painted a
gloomier outlook, with falling export demand and disruptions to
supply chains. The release of U.S. ISM non-manufacturing PMI data and the
Fed's Beige Book are awaited later on Wednesday.
Meanwhile, U.S. private payrolls increased more than
expected in February, ADP National Employment Report showed.
Elsewhere, palladium XPD= fell 1.9% to $2,454.27 per
ounce, while platinum XPT= was unchanged at $874.57. Silver
XAG= fell 0.1% to $17.17 an ounce.
Auto industry platinum demand will rise for the first time
since 2016, but it won't be enough to offset a decline in
investment buying, leaving the market in surplus, the World
Platinum Investment Council said. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Fed boost for gold https://tmsnrt.rs/2Ihc3FV
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