PRECIOUS-Gold gains as surging virus cases eclipse positive U.S. data

* U.S. services sector activity rebounded sharply in June
* Gold hovering close to $1,788.96 peak hit last week
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3aIRuz7
in an external browser

(Updates prices)
By Shreyansi Singh
July 6 (Reuters) - Gold on Monday edged toward a near 8-year
high hit last week as a spike in coronavirus cases kept safety
demand elevated, although robust equities and positive U.S.
services sector data limited the metal's advance.
Spot gold XAU= rose 0.5% to $1,783.75 by 1:41 p.m. EDT
(1741 GMT). U.S. gold futures GCcv1 settled up 0.2% at
$1,793.50 per ounce.
"Investors are doubtful that this recovery is going to
remain as resilient because we're all expecting that snapback
... and we might have a longer recovery, and that should be
supportive for gold prices," said Edward Moya, senior market
analyst at broker OANDA.
In the first four days of July alone, 15 U.S. states have
reported record increases in new cases of COVID-19, while cases
continued to soar in countries including India, Australia and
Mexico. Brushing aside a surge in new coronavirus cases, U.S. stocks
rose after an unexpected growth in the U.S. services sector and
on hopes of a China-led recovery from an economic slump brought
on by the coronavirus outbreak. .N
The Institute for Supply Management's (ISM)
non-manufacturing data showed U.S. services industry activity
rebounded sharply in June, almost returning to its pre-COVID-19
pandemic levels. "The biggest risk is if the data continues to outperform,
that would possibly derail some of those calls for additional
stimulus," Moya added.
Non-yielding bullion has risen 17.5% so far this year,
prompted by stimulus measures and interest rate cuts by central
banks. Gold hit $1,788.96 last week, the highest level since
October 2012. "With 10y breakevens continuing to print new post-Covid
highs, the normalization in inflation expectations may remain a
powerful driver lifting gold prices deeper into $1,800 per ounce
territory," TD Securities wrote in a note. US/
Palladium XPD= fell 0.1% to $1,921.69 an ounce, while
platinum XPT= was up 2.3% at $818.28 per ounce. Silver XAG=
gained 1.1%, at $18.24 per ounce.

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