Coronavirus Impact - Gold Holds Near Two-Week High On Uncertainty...

Spot gold was little changed at $1,582.83 per ounce as of 0453 GMT, having touched its highest since Feb. 3 at $1,584.65 on Friday. The U.S. gold futures were

Gold prices rose to a two-week high in the previous session on Monday as uncertainty over the impact of the coronavirus outbreak on the global economy.

Spot gold was little changed at $1,582.83 per ounce as of 0453 GMT, having touched its highest since Feb. 3 at $1,584.65 on Friday. U.S. gold futures were steady at $1,585.90.

"The price of gold is high, as the uncertainty around coronavirus is high, while the economic the impact is still unclear," said Michael McCarthy, chief market strategist at CMC Markets.

The death toll from the outbreak in mainland China reached 1,770 on Sunday, up from 105 the previous day, the country's National Health Commission.

In a note released on 14 February, UBS stated, "Given the extent of the effect of coronavirus in China, physical demand for gold is likely to be affected. (But) it is too early to estimate its effects."

The premium for physical gold in China is the world's largest bullion consumer, the lowest since at least July 2018 last week.

The epidemic pushed Singapore down to 2020 economic growth forecasts, while a Reuters poll showed that Japanese manufacturers remained pessimistic in February.

The US Federal Reserve also flagged concerns about a possible impact on the US economy.

Cleveland Fed Bank President Loretta Meister said Friday that the epidemic could become a pressure on the US economy this quarter.

UBS stated in the note, "Sentiment is friendly and has a long-term inherent bias. At the moment, investors are waiting for new catalysts and/or more attractive levels."

Speculators increased their rally on COMEX gold for the week to 11 February.

However, Asian shares retreated to a three-week high on China's efforts to shock the virus, while the dollar rose to a four-month high.

"The dollar normally works against the gold price, but the fact that gold did rise despite that goes to say that it (dollar) doesn't have much impact on gold at the moment," CMC's McCarthy said, adding, the strong technical resistance of $1,590 is "limiting the enthusiasm in the market."

Elsewhere, palladium rose 0.6% to $2,445.71 an ounce, silver was up 0.5% at $17.82, while platinum gained 0.6% to $968.95.

Trading is expected to be light as financial markets in the United States will be shut for a public holiday.