(Updates prices)
* Strong support for gold at $1,450/oz -analysts
* Dollar firms near three-year high
* Financial markets further pressured by latest lockdowns
By Brijesh Patel
March 23 (Reuters) - Gold fell on Monday as investors
unloaded bullion in exchange for cash after several more
countries announced lockdowns to curtail the spread of the
coronavirus, overshadowing policymakers' frantic efforts to
cushion the economic impact.
Spot gold XAU= was down 0.2% at $1,494.29 an ounce by 1156
GMT, having risen nearly 2% in the previous session.
U.S. gold futures GCv1 rose 0.9% to $1,497.60.
"It's still pressure coming from tumbling stock markets
leading to selling by speculative investors to raise cash, cover
losses and meet margin calls," said Commerzbank analyst Carsten
Fritsch, adding that declining stock markets will remain a
headwind for gold.
However, gold's downward momentum has slowed for now, with
the metal managing to stay above the key technical support level
of $1,450, Fritsch said.
Financial markets around the world took another hammering on
Monday as a rising tide of national coronavirus lockdowns
threatened to overwhelm measures from global central banks.
MKTS/GLOB
Nearly one in three Americans were ordered to stay home to
slow the spread of the disease. Greece joined France and Spain
in announcing a nationwide lockdown while Italy banned even
domestic travel as the number of fatalities there topped 5,400.
Major central banks around the world rolled out a wave of
fiscal and monetary measures to stem the economic damage from
the virus, which has infected more than 300,000 worldwide.
Investors are counting on further policy easing in the next
few days as the U.S. Senate mulls a $1 trillion package that
would include direct financial help for Americans.
Pressuring gold, the dollar .DXY firmed near a three-year
peak as the sell-off in equities lifted the currency's
safe-haven appeal. USD/
"When you're seeing so much wiped off the stock market on a
regular basis, the shortfall has to be made up somehow and gold
remains the favoured option," OANDA analyst Craig Erlam said in
a note.
"So far, $1,450 has provided a floor, but the trend is
against it and sellers aren't easing up."
Indicative of sentiment, holdings of the world's largest
gold-backed exchange-traded fund, SPDR Gold Trust GLD , fell
1.5% to 908.19 tonnes on Friday. GOL/ETF
Spot gold XAU= is expected to retest a support at $1,452,
a break below which could cause a fall to $1,374, said Reuters
technical analyst Wang Tao. TECH/C
Among other precious metals, palladium XPD= dropped 1.1%
to $1,624.50 an ounce, platinum XPT= eased 0.6% to $607.15 and
silver XAG= fell 0.5% to $12.52.
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