PRECIOUS-Gold ticks higher as virus fears counter gains in equities

* Asian shares climb to four-month peak
* U.S. services sector data due at 1345 GMT
* Spot gold biased to break resistance at $1,778/oz-
technicals
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(Recasts, updates prices)
By Brijesh Patel
July 6 (Reuters) - Gold prices edged higher on Monday,
supported by worries over surging coronavirus cases, while an
uptick in risk appetite among investors limited upside for the
safe-haven metal.
Spot gold XAU= was up 0.1% to $1,776.29 per ounce by 0709
GMT. U.S. gold futures GCcv1 fell 0.3% to $1,785.
"We're seeing some big gains in Hong Kong and Chinese share
markets," and that sort of growth-positive movement is generally
expected to weigh on gold, said Michael McCarthy, chief
strategist at CMC Markets.
Asian shares scaled a four-month high on bets for
super-cheap liquidity and fiscal stimulus to sustain the global
economic recovery, with investors awaiting U.S. services sector
activity data for June later in the day. MKTS/GLOB
Financial markets have regained lost ground as a raft of
positive economic readings lifted sentiment, although a spike in
COVID-19 cases renewed worries about a swift economic recovery.
However, the huge amount of stimulus and evidence in other
markets signalling a shift in focus back towards infection rates
could help gold "maintain its elevated status," CMC's McCarthy
said.
In the first four days of July alone, 15 U.S. states
reported record increases in new cases of COVID-19, which has
killed around 130,000 Americans.
"With increasing number of U.S. states imposing lockdowns
again, it should result in the Federal Reserve's balance sheet
continuing to grow and interest rates kept low, which would in
turn provide underlying support for gold markets," Phillip
Futures said in a note.
Lower interest rates and widespread central bank stimulus
tend to support bullion, which has risen nearly 17% so far this
year.
On the technical front, spot gold is biased to break a
resistance at $1,778 per ounce and rise into $1,788-$1,795
range, said Reuters technical analyst Wang Tao. TECH/C
Palladium XPD= fell 0.7% to $1,910.61 per ounce, while
platinum XPT= rose 1.7% to $813.79. Silver XAG= gained 0.2%
to $18.07.

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