LONDON: Gold prices on Monday eased from a near two-week high, as a monetary policy intervention by China’s central bank to limit the economic impact from the coronavirus outbreak reassured investors and boosted demand for higher-risk assets.

Spot gold was down 0.2 per cent to $1,581.33 per ounce at 1255 GMT. US gold futures shed 0.1pc at $1,584.40.

Gold earlier in the session was hovering near Friday’s near two-week high of $1,584.65, but pared gains as global shares rose after China cut the interest rate on its medium term loans in an attempt to counteract the economic hit from the epidemic.

“The first resistance is now placed at $1,585, followed by $1,592 and by the psychological threshold of $1,600.” Elsewhere, palladium rose 1.8pc to $2,475.64 an ounce, silver was up 0.4pc at $17.79, while platinum gained 0.5 to $967.83.

Trading is expected to be subdued as financial markets in the US will be shut for a public holiday.

Published in Dawn, February 18th, 2020