2020.01.2210:00:00UTC+00Gold Holds Steady As Coronavirus Fears Abate

Gold prices held steady on Wednesday and the dollar strengthened as China's response to a virus outbreak tempered some fears of a global pandemic.

Spot gold edged up marginally to $1,558.57 an ounce, after hitting its lowest level since Jan. 15 in the previous session at $1,545.96. U.S. gold futures were little changed at $1,558.55.

China said it would increase screening and controls after the death toll from a new flu-like coronavirus rose to nine with 440 confirmed cases.

The World Health Organization (WHO) is expected to declare a Public Health Emergency of International Concern in response to the coronavirus outbreak which appears to have originated in eastern China, and spread to more Chinese cities including Beijing and Shanghai.

Asian stock markets recovered from an early slide to close mostly higher while European stocks held largely steady ahead of the European Central Bank's monetary policy meeting on Thursday.