PRECIOUS-Concern over coronavirus drives gold higher

(Updates prices, adds details)
* China to halve some U.S. tariffs from Feb. 14
* Spot gold could rise into $1,564-$1,570 range -technicals
* Platinum slips from one-week high
* U.S. non-farm payrolls report due on Friday

By Swati Verma
Feb 6 (Reuters) - Gold prices rose on Thursday as concern
over the coronavirus and its impact on the global economy drove
buying in the safe-haven asset and outweighed news of lower
Chinese tariffs that are likely to ease trade tensions with the
United States.
Spot gold XAU= gained 0.6% to $1,565.06 per ounce as of
1252 GMT, having dropped on Wednesday to its lowest since Jan.
21 at $1,546.90. U.S. gold futures GCcv1 rose 0.4% to
$1,569.00.
"There is a fundamental demand for gold based on
expectations of a slowdown in economic growth due to the virus
outbreak and there is also support from central banks keeping
rates low," Saxo Bank analyst Ole Hansen said.
Buyers are returning to the market after finding some
confidence from gold managing to hold on to support around
$1,550, Hansen added.
Spot gold could rise into a range of $1,564 to $1,570 after
stabilising around a support at $1,549, Reuters technical
analyst Wang Tao said. TECH/C
The death toll from the virus in mainland China jumped to
563, with experts stepping up efforts to combat a disease that
has shut down Chinese cities and forced thousands more into
quarantine around the world. The World Health Organization on Wednesday played down
reports of "breakthrough" drugs being discovered to treat people
infected with the new virus. "Globally, people are looking at the coronavirus more than
anything else and also how that would affect the global economy.
That is supporting gold," said Brian Lan, of Singapore dealer
GoldSilver Central.
"It (the cutting of tariffs) is countered by how the virus
is going to affect the economy, businesses and China's GDP."
China on Thursday said it would halve additional tariffs
levied against 1,717 U.S. goods last year. The move comes after
Beijing and Washington signed a Phase 1 deal that brought a
truce to a bruising trade war between the world's two largest
economies. For future market direction, investors will look to the U.S.
non-farm payrolls report due on Friday to gauge the strength of
the labour sector, which is also an indicator of the economy's
health.
Elsewhere, palladium XPD= fell 0.7% to $2,415.70, while
silver XAG= rose 1% to $17.77.
Platinum XPT= eased by 0.6% to $975.51 after touching a
one-week high of $987.60.