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PRECIOUS-Gold steady as markets gauge virus impact, await Fed decision

Published 01/29/2020, 10:06 AM
Updated 01/29/2020, 10:08 AM
© Reuters.  PRECIOUS-Gold steady as markets gauge virus impact, await Fed decision
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Jan 29 (Reuters) - Gold prices were little changed on
Wednesday after sliding 1% in the previous session, as investors
took stock of the economic impact of the new coronavirus and
awaited the U.S. Federal Reserve's interest rate decision.

FUNDAMENTALS
* Spot gold XAU= remained steady at $1,565.69 per ounce by
0134 GMT. U.S. gold futures GCv1 fell 0.3% to $1,565.10.
* The death toll from the coronavirus outbreak in China rose
to 132, while the number of confirmed cases rose to 5,974,
heaping pressure on Beijing to control the disease as U.S.
weighs on suspension of all flights to the country. * Asian shares rose although broader confidence was capped
by worries about the economic impact of China's virus outbreak.
MKTS/GLOB
* U.S. President Donald Trump on Tuesday proposed creating a
Palestinian state as part of a Middle East peace plan, drawing
Palestinian condemnation. * Yields on the 10-year Treasury note briefly fell below
those of the 3-month bill early Tuesday for the first time since
October, on concerns over the economic impact of the
coronavirus. * New orders for key U.S.-made capital goods dropped by the
most in eight months in December, while consumer confidence
surged to a five-month high in January. * Investors look forward to the U.S. Federal Reserve's
policy decision due later in the day. FEDWATCH * Gold prices will hold above $1,500 an ounce this year and
make modest gains in 2021 as low interest rates and geopolitical
uncertainly bolster its appeal, while silver prices will begin
to catch up, a Reuters poll showed on Tuesday. * Swiss gold exports fell last year to their lowest since
the records became public in 2012, with shipments to China, the
biggest market, tumbling by nearly two thirds, customs data
showed on Tuesday. * Switzerland's exports of palladium doubled last year while
platinum exports fell. * Palladium XPD= rose 0.2% to $2,293.75 an ounce.
* Silver XAG= was flat at $17.44, having dipped to its
lowest since Dec. 24 at $17.42 earlier in the session, while
platinum XPT= shed 0.1% to $984.68.

DATA/EVENTS (GMT)
0700 Germany GfK Consumer Sentiment Feb
0700 Germany Import Prices MM, YY Dec
0700 UK Nationwide House Price MM, YY Jan
0745 France Consumer Confidence Jan
0900 EU Money-M3 Annual Growth Dec
1500 US Pending Sales Change MM Dec
1900 US Federal Open Market Committee announces its
decision on interest rates followed by statement

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