PRECIOUS-Gold gains after biggest daily decline in a month

* ECB policy decision at 1145 GMT
* U.S. dollar down about 1% so far this week
* For an interactive graphic tracking the global coronavirus
spread, open https://tmsnrt.rs/3aIRuz7 in an external browser

(Adds comment, updates prices)
By Harshith Aranya
June 4 (Reuters) - Gold prices ticked up on Thursday, after
a rally in equity markets in the previous session on tentative
signs of economic recovery as mandated shutdowns ease sparked
the biggest daily fall in the metal since April 30.
Spot gold XAU= rose 0.2% to $1,701.02 per ounce by 0715
GMT after a 1.7% drop on Wednesday. U.S. gold futures GCv1
fell 0.1% to $1,703.70.
The market is seeing some "corrective action" after
Wednesday's steep decline, said DailyFx currency strategist Ilya
Spivak.
Optimism over the prospect of an economic recovery as
coronavirus-related lockdown restrictions ease has dampened
demand for the safe-haven metal recently, sending prices down
1.5% so far this week.
Data on Wednesday showed U.S. private payrolls fell less
than expected in May, while China's services sector returned to
growth for the first time since January. Asian shares hit a two-month high on Thursday as government
stimulus expectations lifted sentiment, curbing the appeal of
gold. MKTS/GLOB
"The consensus is finding it difficult to be too bullish on
the yellow metal at the moment, with equity markets soaring
higher by the day," said Stephen Innes, chief market strategist
at financial services firm AxiCorp, in a note
Despite improving risk sentiment, gold prices are holding
above the key $1,700 an ounce level on simmering Sino-U.S.
tensions, protests in U.S. cities and a weaker dollar.
The dollar index .DXY has fallen about 1% this week, with
optimism over the reopening of economies around the world
reducing demand for the greenback. USD/
Market participants are now awaiting the European Central
Bank's policy decision at 1145 GMT.
The ECB is certain to give more stimulus, but there are
questions over whether the bank will announce a move on Thursday
or hold out until July. Among other metals, palladium XPD= was down 0.6% to
$1,937.55 per ounce, while platinum XPT= rose 0.5% to $830.04.
Silver XAG= eased for a third straight session, down 1% to
$17.49.