* Gold up more than 4% so far this week
* Silver slips, but set for best week in over three decades
* Dollar index near two-year low, equities retreat
* Interactive graphic tracking global spread of coronavirus:
* open https://tmsnrt.rs/3aIRuz7 in an external browser
(Updates prices)
By Eileen Soreng
July 24 (Reuters) - Gold resumed its march toward $1,900 on
Friday as souring U.S.-China relations added fuel to a rally
towards a nine-year peak driven by fears over the economic hit
from the coronavirus pandemic.
Silver, meanwhile, was en route to its best week since 1987.
Spot gold XAU= was 0.3% higher at $1,892.81 per ounce by
1207 GMT, having hit its highest since September 2011 at
$1,897.91 on Thursday.
U.S. gold futures GCv1 rose 0.1% to $1,891.70.
"It's the indirect effects of the virus to the economy and
deep doubts whether we're going to see a V-shaped recovery which
is supporting gold," said independent analyst Ross Norman,
adding that the "fear factor around the US-Chinese spat will add
fuel to the fire but won't sustain (it)".
If the economy did not show "quality signs" of improving,
gold could clear $1,922 and continue towards $2,000.
Non-yielding gold has surged 24% this year, underpinned by
low interest rates and stimulus from central banks to revive
their economies, which benefits bullion since it's a perceived
safe-haven hedge against inflation and currency debasement.
China on Friday ordered the United States to shut its
Chengdu consulate in retaliation for the closure of its
consulate in Texas, dampening appetite for risk assets.
MKTS/GLOB
Further helping gold, the dollar index .DXY held near a
two-year low, and was on track for its biggest weekly decline
since early June. USD/
Commerzbank analysts said the rise in gold and silver had
happened "possibly too quickly," adding in a note that this
entailed "the risk of a setback, especially as gold and silver
are being driven almost exclusively by extremely strong
investment demand".
Silver XAG= fell 0.5% to $22.60 per ounce, but was still
up over 17% for the week, bolstered by hopes for a revival in
industrial activity.
Platinum XPT= rose 0.8% to $912.64 and palladium XPD=
climbed 1.7% to $2,162.28.
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Golden Ascent https://tmsnrt.rs/39nkWKN
Silver's resurgence https://tmsnrt.rs/2D5ThC4
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