PRECIOUS-Gold slips as higher equities weigh despite rising virus cases

Reuters

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 (Recasts, adds comments, updates prices)
    * U.S. stocks gain on positive virus drug update 
    * Gold up about 1.4% so far this week 
    * Silver on track for 5th straight weekly rise 

    By Shreyansi Singh
    July 10 (Reuters) - Gold fell on Friday as gains in U.S.
equities trimmed flows into bullion, which was still on track
for a fifth straight weekly gain after soaring to its highest in
nearly nine years this week on surging COVID-19 infections.
    Spot gold prices  XAU=  slid 0.3% to $1,797.89 per ounce by
3:13 p.m. EDT (1913 GMT). U.S. gold futures  GCv1  settled down
0.1% at $1,801.9.
    On a weekly basis, gold has gained more than 1.4% after
rallying to its highest since September 2011 at $1,817.71 on
Wednesday. 
    "Gold has risen quite a bit in the past week along with
exponential flows in the ETFs," said George Gero, managing
director at RBC Wealth Management.  GOL/ETF 
    "Now that the weekend is approaching with a strong equity
market, investors are taking advantage and booking profit to
take positions in riskier assets."
    U.S. stocks advanced on Friday as a positive update from
Gilead's antiviral drug to treat COVID-19 countered nerves over
a record rise in U.S. coronavirus cases.  .N  
    More than 60,500 new COVID-19 infections were reported
across the United States on Thursday, according to a Reuters
tally, the largest one-day increase in any country since the
pandemic emerged in China last year.  urn:newsml:reuters.com:*:nL1N2EG13N  urn:newsml:reuters.com:*:nL4N2EH085
    Despite its pullback on Friday, the non-yielding metal has
risen over 18% so far this year.  urn:newsml:reuters.com:*:nL3N2C32BP
    "Ten-year yields are still declining more than the inflation
expectations are declining, and that's been the driver behind
gold, and why we're seeing these kind of whip-saws on the day,"
said Daniel Ghali, commodity strategist at TD Securities.
    Limiting bullion's losses, 10-year U.S. Treasury yields 
 US10YT=RR  dropped to their lowest since late April.  US/ 
    In other metals, silver  XAG=  was little changed at $18.66
an ounce. It jumped to its highest since September 2019 on
Thursday, putting it on track for a fifth straight week of
gains.
    Palladium  XPD=  gained 1.3% to $1,968.01 per ounce,
platinum  XPT=  was down 1.9% at $817.94 per ounce.

 (Reporting by Nakul Iyer, Diptendu Lahiri and Shreyansi Singh
in Bengaluru; Editing by Andrea Ricci and Dan Grebler)
 ((Shreyansi.Singh@thomsonreuters.com; +91 8061823666/3590 (If
within U.S. call +1 646 223 8780); Reuters Messaging:
Shreyansi.Singh@thomsonreuters.com))

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