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Gold prices retreated on Friday as investors booked profits from a 1 percent jump in the last session, but the metal had some support as mounting concerns over the rapid spread of coronavirus outbreak lifted expectations of rate cuts by major central banks.

Palladium, meanwhile, fell as much as 5 percent on profit-taking after the autocatalyst metal soared to an all-time high on Thursday. Spot gold  was down 0,4 percent at $1 635,39 per ounce by 0422 GMT. The metal has added about 3 percent so far this month, its third straight monthly gain.

US gold futures inched down 0,3 percent to $1 637,00 per ounce.

“This virus is getting a lot more serious . . .  People are worried there might be a need for some more stimulus measures, so that means lower (interest) rates,” said John Sharma, economist at National Australia Bank, adding that high prices led to some profit-taking.

Governments from Iran to Australia shut schools, cancelled big events, stocked up on medical supplies and prepared emergency responses as new infections reported around the world surpassed those in mainland China. – Reuters.