PRECIOUS-Gold rises as oil slump adds to global growth woes

(Updates prices)
* Oil prices plummet to lowest since 1999
* SPDR Gold holdings rise 0.4% on Tuesday
* Interactive graphic tracking global virus spread: open https://tmsnrt.rs/3aIRuz7
in an external browser

By Brijesh Patel
April 22 (Reuters) - Gold prices rose on Wednesday as
investors sought safe-havens after an historic slump in oil
prices exacerbated fears of a global recession, with most
countries remaining locked down in the grip of the coronavirus
pandemic.
Spot gold XAU= was up 0.6% at $1,695.05 per ounce at 1203
GMT, after touching a near two-week low on Tuesday as a wider
market sell-off drove a scramble for cash and prompted investors
to sell precious metals to cover losses.
U.S. gold futures GCcv1 jumped 1.7% to $1,715.80.
"There is a lot of uncertainty in commodity markets after a
drastic sell-off in crude oil. For gold, there is still
safe-haven buying going on even though the dollar is holding
steady," Hareesh V, head of commodity research at Geojit
Financial Services, said.
"Gold prices are expected to firm in the coming days.
Overall, there is a lot of volatility in commodity markets. Gold
has been on the positive side because of the coronavirus-related
economic uncertainty."
Oil slumped to less than $16 a barrel, hitting its lowest
since 1999, with the market awash with excess supply as the
economic fallout from the pandemic continues to hammer demand
for fuels. O/R USD/
More than 2.54 million people have been reported to be
infected by the novel coronavirus globally and 177,004 have
died, according to a Reuters tally. Many countries have extended lockdowns to curtail its spread
and governments and central banks have rolled out a wave of
fiscal and monetary support to try to limit the economic damage.
The U.S. Senate on Tuesday unanimously approved $484 billion
in fresh relief for the world's largest economy. Gold tends to benefit from widespread stimulus measures from
central banks, as it is often seen as a hedge against inflation
and currency debasement.
Indicative of sentiment, holdings in the world's largest
gold-backed exchange-traded fund, SPDR Gold Trust GLD , rose
0.4% to 1,033.39 tonnes on Tuesday. GOL/ETF
"On the technical side, there is now quite a solid support
zone placed at $1,675 per ounce and a clear break above $1,700
could open space for further rallies," ActivTrades chief analyst
Carlo Alberto De Casa said in a note.
"The resistance areas, where we would expect gold to
struggle to continue its recovery, are placed at $1,710, at
$1,735 and $1,747"
Among other precious metals, palladium XPD= gained 2% to
$1,961.50 per ounce, having touched a near one-month low in the
previous session.
Platinum XPT= rose 0.4% to $749.41 per ounce, while silver
XAG= eased 0.4% to $14.87.