PRECIOUS-Gold steadies near more than 8-year peak as virus cases surge

* Gold within striking distance of key $1,800/oz level
* SPDR Gold Trust holdings rise 0.7% on Tuesday
* Spot gold faces resistance at $1,796/oz - technicals
* Interactive graphic tracking global spread of coronavirus:
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(Updates prices)
By Brijesh Patel
July 8 (Reuters) - Gold held steady near a more than
eight-year high on Wednesday, with investors hitting pause on a
rally fuelled by a surge in coronavirus cases and hopes of more
stimulus measures from the U.S. Federal Reserve.
Spot gold XAU= was little changed at $1,794.62 per ounce
by 0459 GMT, after hitting its highest since November 2011 at
$1,796.93 on Tuesday, just a few dollars away from the key level
of $1,800.
U.S. gold futures GCcv1 eased 0.1% to $1,807.80.
"The main focus continues to be on the U.S.," said Stephen
Innes, chief market strategist at financial services firm
AxiCorp.
"If the curve continues to steepen and the virus unabated,
we are going to break $1,800 just for the fact that the Fed will
have to be forced to add more stimulus."
The U.S. coronavirus outbreak crossed a grim new milestone
of more than 3 million infections as more states reported record
numbers of new cases. Compounding economic concerns, the European Commission on
Tuesday forecast the euro zone would drop deeper into recession
this year and rebound less steeply in 2021 than previously
thought. "The health, financial and economic uncertainties generated
by the COVID-19 pandemic and its aftermath are likely to
continue to support gold's rally well into 2021, but at a
reduced level," HSBC analysts said in a note.
Indicative of sentiment, holdings of SPDR Gold Trust GLD
rose 0.7% on Tuesday. GOL/ETF
Fed officials expressed concern that the surge in virus
cases threatened to pinch consumer spending and job gains. One
Fed policymaker pledged more support ahead from the U.S. central
bank. Gold tends to benefit from widespread stimulus measures from
central banks because it is widely viewed as a hedge against
inflation and currency debasement.
Spot gold faces a resistance at $1,796 per ounce, a break
above which could lead to a gain to $1,831, said Reuters
technical analyst Wang Tao. TECH/C
Palladium XPD= gained 0.3% to $1,921.71 per ounce,
platinum XPT= rose 0.2% to $836.96 and silver XAG= edged
0.2% higher to $18.34.

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