PRECIOUS-Gold dips as equities rally on economic recovery hopes

* Dollar index falls to more than two-month low
* SPDR gold holdings at highest since April 2013
* For an interactive graphic tracking the global coronavirus
spread, open https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By K. Sathya Narayanan
June 3 (Reuters) - Gold extended losses on Wednesday as
equities jumped to three-month highs on optimism over global
economic recovery, though losses were limited by a weaker U.S.
dollar and civil unrest in the United States.
Spot gold XAU= fell 0.5% to $1,719.13 per ounce by 1144
GMT, after dropping about 0.7% on Tuesday. U.S. gold futures
GCcv1 were down 0.4% at $1,726.90.
"Generally markets are getting comfortable with the fact
that even though the data is bad, things are likely to improve
and that is taking the shine off gold," said Michael Hewson,
Chief Market Analyst at CMC Markets UK.
Global shares hit three-month highs, driven by easing
lockdowns and hopes for further monetary stimulus, despite
rising COVID-19 tolls and continuing protests in U.S. cities
over the death of a black man in police custody. MKTS/GLOB
"Nevertheless, the weak economic backdrop continues to
provide some support, with investors continuing to pile into
gold-backed ETFs," ANZ analysts wrote in a note.
Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 0.1% to 1,129.28 tonnes
on Tuesday, their highest since April 2013. GOL/ETF
Gold, widely viewed as a safe-haven investment, tends to
gain during times of political and economic uncertainty.
Despite the fall in bullion prices, gold is expected to
remain supported on the back of the weaker dollar, protests on
the streets of the United States, souring U.S.-China relations
and inflation worries because of widespread stimulus, Hewson
added.
The dollar index .DXY fell to a more than two-month low
and the protests in U.S. cities have continued despite curfews
and vows by President Donald Trump to call on the National Guard
or even the U.S. military. USD/ In other metals, palladium XPD= declined 0.4% to $1,940.87
an ounce, while platinum XPT= eased 0.1% to $838.07.
Silver XAG= fell 1.1% to $17.89, having hit its highest
since Feb. 25 on Monday.