PRECIOUS-Gold holds steady on central bank policy expectations

(Updates prices)
* Markets await ECB policy meeting on Thursday
* Equities gain after China reassurance on coronavirus

By K. Sathya Narayanan
Jan 22 (Reuters) - Gold prices were little changed on
Wednesday as technical support on expected dovish monetary
policy from central banks offset revived appetite for riskier
assets and an upbeat dollar.
Spot gold XAU= was down 0.1% at $1,555.73 an ounce at 1322
GMT. U.S. gold futures GCcv1 dipped 0.2% to $1,555.50.
"We have good support between $1,545 and $1,550, prices are
rebounding on this level, confirming strong investor appetite
for bullion in this range," said ActivTrades chief analyst Carlo
Alberto De Casa, adding that a risk-on scenario in wider markets
could stymie gold's recovery.
"(Gold) Investors are long because central banks are still
dovish. We have potential for the Bank of England and the
Australian central bank to cut rates. I don't see the U.S.
Federal Reserve or ECB being hawkish in the next six months
either." CFTC/
Investors will keep a close eye on the European Central
Bank's first policy meeting of the year on Thursday, while the
Fed's first meeting is scheduled for Jan. 28-29. Lower interest rates reduce the opportunity cost of holding
non-yielding bullion and weigh on the dollar.
Global equities rose, buoyed after Chinese authorities
raised hopes that the coronavirus outbreak would be contained,
while the dollar firmed against other key currencies.
MKTS/GLOB USD/
The death toll from the outbreak in China rose to nine on
Wednesday with 440 confirmed cases, Chinese health officials
said as authorities stepped up countermeasures as millions of
Chinese prepare to travel for the Lunar New Year holiday.
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 gold market.
Elsewhere, palladium XPD= gained 0.2% to $2,405.16 an
ounce, having slid by about 4% in the previous session.
"We attribute this to profit-taking after the price reached
a record high the day before yesterday," Commerzbank analysts
said in a note. "However, we would not read too much into
yesterday's price slide. There is no sign as yet of any trend
reversal."
The auto-catalyst metal touched a record high of $2,582.19
on Monday, propelled by a prolonged supply deficit.
Silver XAG= rose 0.2% to $17.81 and platinum XPT= was up
0.1% at $1,000.31.