PRECIOUS-Gold falls further as stocks jump to near 3-month high

* Dollar index falls to over 2-month low
* SPDR gold holdings gain for 6th day
* For an interactive graphic tracking the global coronavirus
spread, open https://tmsnrt.rs/3aIRuz7 in an external browser

(Adds comments, recasts with updated prices)
By Harshith Aranya
June 3 (Reuters) - Gold fell for a second straight session
on Wednesday as stocks jumped on hopes for further stimulus and
optimism about an economic recovery, dampening demand for the
safe-haven metal.
Spot gold XAU= slipped 0.3% to $1,721.86 per ounce by 0626
GMT, after declining 0.7% on Tuesday. U.S. gold futures GCcv1
fell 0.4% to $1,726.90.
"There are a lot of investors who bought gold as a hedge for
stocks, but stocks are going up and they don't see value in that
now," said Stephen Innes, chief market strategist at financial
services firm AxiCorp.
Reducing the appeal of gold, global shares vaulted to a near
three-month high amid signs of a recovery in business activity
as governments restart their economies. MKTS/GLOB
Governments and central banks around the globe have
unleashed unprecedented fiscal and monetary stimulus for their
economies floored by the coronavirus pandemic. Investors now await a meeting of the European Central Bank
on Thursday and hope that it will deliver additional stimulus,
by around 500 billion euros. "Nevertheless, the weak economic backdrop continues to
provide some support, with investors continuing to pile into
gold-backed ETFs," ANZ analysts wrote in a note.
Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose for the sixth straight
session on Tuesday. GOL/ETF
Meanwhile, the dollar index .DXY fell to a more than
two-month low, and demonstrations continued against police
brutality in the United States, providing some support to the
metal. USD/ There is not much pressure on gold to fall below the $1,700
level, Innes said, adding that investors would continue to buy
it on dips amid low interest rates and prevailing uncertainties.
In other metals, palladium XPD= rose 1.6% to $1,980.42 per
ounce, while platinum XPT= fell 0.3% to $836.76.
Silver XAG= fell 1.2% to $17.87, having hit its highest
since Feb. 25 on Monday.