June 15, 2020 / 9:42 AM / 24 days ago

PRECIOUS-Gold slips as dollar steadies amid second wave fears

    * SPDR Gold Trust holdings up 0.1% on Friday
    * Specs cut gold bullish positions in week to June 9 -CFTC
    * Dozens of new coronavirus cases emerge in Beijing

 (Recasts, adds comment, updates prices)
    By Eileen Soreng
    June 15 (Reuters) - Gold fell 1% on Monday as the dollar
lingered near a more than one-week high, but the metal held
comfortably above $1,700 an ounce as fears of a second wave of
the coronavirus pandemic dampened risk sentiment.
    Spot gold        was 1% lower at $1,712.00 per ounce by 1211
GMT. U.S. gold futures        slipped 1.4% to $1,713.70.
    "The greenback seems to be back in fashion amid fears of a
second wave of coronavirus destabilizing global growth and
stability," said FXTM analyst Lukman Otunuga.
    "Gold remains in a very wide range with support at $1,670
and resistance at $1,747. A breakout above this...could inspire
an incline towards $1,765."
    Against a basket of currencies, the dollar steadied       ,
while equities were pressured by fears of a second wave of
COVID-19 infections.                   
    Beijing has recorded dozens of new cases in recent days,
while new infections and hospitalisations in record numbers
swept through more U.S. states.             
    "We are in a bit of a holding pattern waiting to see whether
or not we do get a confirmed second wave, and if economies start
to shut again, we could see gold go higher" said Michael Hewson,
chief market analyst at CMC Markets UK.
    Gold prices jumped 2.6% last week, their strongest
performance since April 10, as worries of a new wave picked up. 
    Bullion also faces deflationary pressures in the short-term,
said Saxo Bank analyst Ole Hansen.
    "Inflation is collapsing with the drop in consumer demand
and the slow reopening of economies. So that's removing the
demand for gold."
    SPDR Gold Trust holdings       rose 0.1% on Friday, while
speculators cut their bullish positions in COMEX gold and silver
contracts in the week to June 9.                     
    Palladium        was down 0.8% at $1,903.17 per ounce,
platinum       eased 0.1% to $804.40 after touching a one-month
low of $780.05, and silver        fell 1.8% to $17.13, having
earlier hit a near three-week low of $17.02. 
    

 (Reporting by Eileen Soreng in Bengaluru; Editing by Mark
Potter, Kirsten Donovan)
  
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