Feb 20 (Reuters) - Gold prices on Thursday eased from their
highest in nearly seven years in the previous session, as
safe-haven demand took a hit after a dramatic drop in new
coronavirus cases and on expectations that China will continue
to shore up its economy.
FUNDAMENTALS
* Spot gold XAU= was down 0.2% at $1,607.49 per ounce, as
of 0100 GMT. In the previous session, bullion prices surged to
their highest since March 25, 2013 at $1,612.62.
* U.S. gold futures GCv1 remained unchanged at $1,612.40.
* China reported on Thursday a drop in new cases in the
province at the heart of the coronavirus outbreak. Cases in
Hubei province were 349 on Wednesday from 1,693 a day earlier
and the lowest since Jan. 25, although it was accompanied by a
change in methodology. * Asian share markets edged higher as worries over the virus
outbreak alleviated. MKTS/GLOB
* China is widely expected to cut its benchmark lending rate
on Thursday, adding to a slew of fiscal and monetary measures in
recent weeks, aimed at cushioning the virus impact on the
economy. * U.S. Federal Reserve policymakers were cautiously
optimistic about their ability to hold interest rates steady
this year, minutes of the central bank's last policy meeting
showed, even as they acknowledged new risks caused by the
outbreak. * A meeting of U.S. government officials to discuss further
curbs on exports to Huawei and China is still on for Thursday,
despite a pushback from President Donald Trump against stricter
limits on shipments of U.S. products overseas. * Holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust GLD , rose 0.2% to 931.60
tonnes on Wednesday. GOL/ETF
* Palladium XPD= advanced 0.6% to $2,728.50 an ounce. In
the previous session, the auto-catalyst metal touched a record
high of $2,841.54.
* Silver XAG= was down 0.4% at $18.33, but hovered near a
more than one-month high hit in the last session, while platinum
XPT= fell 0.5% to $1,000.71.
DATA/EVENTS (GMT)
0745 France CPI (EU Norm) Final MM, YY Jan
0930 UK Retail Sales MM, YY Jan
0930 UK Retail Sales Ex Fuel MM Jan
1330 US Initial Jobless Claims Weekly
1330 US Philly Fed Business Indx Feb