June 19, 2020 / 3:28 AM / 16 days ago

PRECIOUS-Gold gains on growing concerns about second wave of pandemic

    * Dollar on track for best week in a month
    * Palladium heads for second straight weekly decline
    * Goldman lifts 12-month gold price view to $2,000/oz

 (Updates prices)
    By Brijesh Patel
    June 19 (Reuters) - Gold prices rose on Friday as concerns
about a second wave of coronavirus infections dented hopes for a
swift global economic recovery and drove investors towards the
safe-haven metal.
    Spot gold        was up 0.5% at $1,731.49 per ounce by 0750
GMT. U.S. gold futures         also rose 0.5%, to $1,740.10.
    "Gold prices seem to be in somewhat of an equilibrium at the
moment. Balanced between geopolitical and COVID-19 concerns on
one side, and economic recovery hopes and dollar strength on the
other," said Jeffrey Halley, senior market analyst at OANDA.
    "Gold continues to see patient buyers on dips to $1,710 to
$1,715 an ounce, with equally patient sellers lying in wait on
any spikes towards $1,740."
    More than 8.38 million people have been infected by the
coronavirus globally, with China reporting 32 new virus cases on
Friday, 25 of which were in the capital Beijing.             
    A surge in fresh infections in several U.S. states and the
imposition of travel curbs in Beijing to stop a new outbreak
have renewed fears of a delay in economic recovery as countries
reopen after conronavirus-induced lockdowns.      
    Simmering geopolitical tensions between North Korea and
South Korea, and India and China also offered some support to
bullion.                          
    U.S. President Donald Trump on Thursday renewed his threat
to cut ties with China, a day after his top diplomats held talks
with Beijing amid souring relations.             
    Goldman Sachs raised its 12-month gold price view to $2,000
per ounce, citing currency debasement fears and higher levels of
economic uncertainty due to the coronavirus crisis.             
    Meanwhile, the dollar index        held steady on Friday and
was heading for its biggest weekly gain in a month.       
    Elsewhere, palladium        dropped 0.9% to $1,907.99 per
ounce and was on track for a second consecutive weekly decline. 
    Silver        gained 0.3% to $17.55, and platinum       
rose 0.8% to $810.26.

 (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi
Aich/Uttaresh.V/Susan Fenton)
  
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