* Investors await ECB meeting at 1230 GMT
* Interactive graphic on coronavirus spread: open https://tmsnrt.rs/3aIRuz7 in external browser
* GRAPHIC-2020 asset returns: http://tmsnrt.rs/2jvdmXl
By Sumita Layek
March 12 (Reuters) - Gold prices rose on Thursday as investors shunned risky assets after the United States announced a travel ban from virus-hit Europe, exacerbating fears of a global economic downturn.
Spot gold XAU= was up 0.2% to $1,638.35 per ounce at 0937 GMT. U.S. gold futures GCv1 fell 0.3% to $1,637.80.
European shares sank to their lowest in almost four years after the United States announced a 30-day restriction on travel from Europe's 26-country Schengen Area - which excludes Britain and Ireland - in an attempt to halt the fast-spreading coronavirus. .EU has been a massive sell-out in equity markets ... gold is profiting from the insecurity in the markets, the huge volatility and the price slump in stocks," said Commerzbank (DE:CBKG) analyst Eugen Weinberg.
"It seems as if coronavirus is the black swan of 2020 ... most of the actions by authorities don't seem to reassure markets. The market is being driven by the news and sentiment, which is very downbeat and cautious."
The coronavirus, which has infected more than 121,000 people in 118 countries and killed over 4,300, was described as a pandemic by the World Health Organization (WHO) on Wednesday. still have to see the real impact on the economy, the coronavirus is just developing and spreading, we are just in the starting phase ... central banks can try to limit the downside a bit, but it cannot solve the corona problem," said ABN Amro analyst Georgette Boele.
Investors are now focused on a European Central Bank policy meeting later in the day where it is expected to unveil new stimulus measures to cope with the shock of the virus epidemic. central banks have taken steps to shield their economies from the outbreak, with the Bank of England being the latest to cut interest rates on Wednesday. The U.S. Federal Reserve reduced rates in an emergency move last week.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Elsewhere, auto-catalyst metal palladium XPD= dipped 3.7% to $2,220.14, having earlier fallen as much as 5.9% to a near two-month low.
"Palladium is one of the riskier assets," said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade, adding reduced demand from the automobile sector was weighing on the metal.
Silver XAG= fell 0.6% to $16.65, while platinum XPT= shed 0.5% to $855.30.