March 2, 2020 / 1:33 AM / a month ago

PRECIOUS-Gold rises as recession fears weigh on risk sentiment

    March 2 (Reuters) - Gold prices rose more than 1% on Monday,
following a steep fall across the precious metals complex in the
previous session, as worries that the coronavirus epidemic could
push the global economy into recession sent investors scurrying
for safe havens.
    
    FUNDAMENTALS
    * Spot gold        gained 1.2% to $1,602.90 per ounce by
0104 GMT, having slumped more than 4% in intraday trade on
Friday. 
    * U.S. gold futures        rose 1.9% to $1,597.10. 
    * The rout in world stocks deepened, with investors rattled
by weekend data from China that showed its fastest ever
contraction in factory activity, raising fears of a global
recession from the coronavirus.             
    * The benchmark U.S. 10-year Treasury yields fell to a
record low, while the yen        rose to its highest since
October against the U.S. dollar.
    * Factory activity in China contracted at the fastest pace
ever in February, even worse than during the global financial
crisis, highlighting the damage from the outbreak.             
    * China's manufacturers are struggling to find enough
workers to fill factory floors as the regular post-Lunar New
Year labour migration trickles rather than flows, slowing the
restart of the economy amid the virus crisis.             
    * The worldwide spread of the virus and its implications on
the economy had triggered the biggest weekly stock market rout
since the 2008 financial crisis last week, wiping $6 trillion
off global equities.              
    * Goldman Sachs economists on Sunday predicted the Federal
Reserve will cut rates aggressively, saying the head of the U.S.
central bank sent a clear signal with his unscheduled statement
on Friday.              
    * On Friday, Fed Chair Jerome Powell issued a statement in
which he said that while the U.S. economy remained strong, the
virus "posed an evolving risk" and the Fed stood ready to take
action if needed.             
    * Palladium        rose 0.7% to $2,610.62 per ounce, having
slumped as much as 13% in the previous session.
    * Platinum        gained 1.9% to $880.10, having touched a
six-month low on Friday.
    * Silver        rose 1.3% to $16.88, backing away from an
almost seven-month low touched in the last session.  
    
DATA/EVENTS (GMT)    
0145 China   Caixin Manufacturing PMI Final (Feb)
0855 Germany Markit/BME Manufacturing PMI (Feb)
0900 EU      Markit Manufacturing Final PMI (Feb)
0930 UK      Markit/CIPS Manufacturing PMI Final (Feb)
1445 U.S.    Markit Manufacturing PMI Final (Feb)
1500 U.S.    ISM Manufacturing PMI (Feb)   

 (Reporting by K. Sathya Narayanan in Bengaluru; Editing by
Subhranshu Sahu)
  
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