2020.03.0410:11:00UTC+00Gold Holds Steady As Equities Recover

Gold prices held steady on Wednesday after rising as much as 3 percent in the previous session following a surprise rate cut by the U.S. Federal Reserve.

Spot gold edged up 0.15 percent to $1,641.55 per ounce, after having registered its biggest single-day percentage gain since 2016 on Tuesday. U.S. gold futures were down 0.1 percent at $1,642.45 per ounce.

Risk sentiment improved somewhat after the Federal Reserve showed urgency in cutting interest rate by 50 basis points in an unscheduled meet in an extraordinary attempt to contain the coronavirus's economic fallout.

Speculation is rife that the European Central Bank will respond to the Fed's "decisive" interest rate cut with easing of its own.

The euro held near two-month highs and the dollar recouped some losses amid the broader uptick in sentiment.

On the data front, a private survey showed that China's service sector had its worst month on record in February. The Caixin/Markit services Purchasing Managers' Index (PMI) plunged to 26.5 from 51.8 in January.

A measure of Eurozone business activity grew at the fastest pace in six months in February. IHS Markit's Composite Purchasing Managers' Index nudged up to 51.6 from 51.3 in January. That matched an earlier flash reading.

Britain's economy grew at its fastest rate since September 2018 last month on the back of a jump in construction activity.

The composite IHS Markit/CIPS UK Purchasing Managers' Index rose to 53.0 in February from 52.8 in January, despite small losses in momentum in the larger services and manufacturing sectors.

Eurozone retail sales expanded in January, reversing a fall in the previous month, data from Eurostat showed.

The release of the U.S. ISM non-manufacturing PMI data and the Fed's Beige Book of economic conditions may sway sentiment later in the day.