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    Gold eases from 7-year peak on slowing virus spread, China stimulus hopes

    Synopsis

    US gold futures remained unchanged at $1,612.40.

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    Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , rose 0.2 per cent to 931.60 tonnes on Wednesday.

    Commodity Summary

    MCX
    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 was down 0.2 per cent 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.

    US gold futures 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.

    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.

    US 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 US 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 US products overseas.

    Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , rose 0.2 per cent to 931.60 tonnes on Wednesday.

    Palladium advanced 0.6 per cent to $2,728.50 an ounce. In the previous session, the auto-catalyst metal touched a record high of $2,841.54.

    Silver was down 0.4 per cent at $18.33, but hovered near a more than one-month high hit in the last session, while platinum fell 0.5 per cent to $1,000.71.
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