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PRECIOUS-Gold eases as drop in virus cases lifts risk appetite

Published 02/19/2020, 09:32 AM
Updated 02/19/2020, 09:40 AM
PRECIOUS-Gold eases as drop in virus cases lifts risk appetite
XAU/USD
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XPD/USD
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Feb 19 (Reuters) - Gold prices eased on Wednesday after
crossing the key $1,600 level in the previous session, as global
shares climbed in cautious trade following a slight dip in new
coronavirus cases, while palladium hit a fresh peak on supply
issues.

FUNDAMENTALS
* Spot gold XAU= was down 0.1% at $1,600.67 per ounce, as
of 0037 GMT. In the previous session, bullion prices surged 1.3%
to their highest since Jan. 8 at $1,605.10.
* U.S. gold futures GCv1 remained unchanged at $1,603.60.
* New coronavirus cases in the Chinese province at the
epicentre of the outbreak fell for a second straight day to
1,693, but deaths rose after the World Health Organization had
cautioned there was not yet enough data to know if the epidemic
had slowed. * Asian shares and U.S. stock futures edged cautiously
higher on Wednesday as investors tried to shake off worries
about the epidemic. MKTS/GLOB
* Providing a fillip to investor confidence was China's
decision to grant exemptions on retaliatory duties imposed
against 696 U.S. goods, the most substantial tariff relief to be
offered so far, as Beijing seeks to fulfill commitments made in
its interim trade deal with the United States. * On Feb. 17, Chinese policymakers had also implemented a
raft of measures to support an economy jolted by a coronavirus
outbreak that is expected to have a devastating impact on
first-quarter growth. * A federal judge in Texas rejected Chinese
telecommunications equipment maker Huawei Technologies Co Ltd's
constitutional challenge to a U.S. law that restricted its
ability to do business with federal agencies and their
contractors. * The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust GLD holdings rose 0.63% to 929.84 tonnes on
Tuesday. GOL/ETF
* Palladium XPD= inched up 0.2% to $2,641.02 an ounce.
Earlier in the session, the auto-catalyst metal touched a record
high of $2,669.00.
* Silver XAG= was trading flat at $18.17, while platinum
XPT= rose 0.5% to $996.20.

DATA/EVENTS (GMT)
0930 UK CPI Jan
1330 US Housing Starts Number Jan
1900 US Federal Open Market Committee will release

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