PRECIOUS-Gold pulls back from record high as dollar rebound weighs

Reuters

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    * Dollar index rises 0.3% against rivals
    * ANZ raises 6–12 month target for gold to $2,300/oz
    * Interactive graphic tracking global spread of coronavirus:
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https://tmsnrt.rs/3aIRuz7 in an external browser

 (Updates prices)
    By Sumita Layek
    Aug 3 (Reuters) - Gold prices retreated from a record high
on Monday after the dollar strengthened and investors booked
some profits, with the  focus now on proposals for new U.S.
coronavirus aid to extend relief benefits to jobless Americans.
    Spot gold  XAU=  was down 0.1% at $1,972.52 per ounce at
1:46 p.m. EDT (1746 GMT), after hitting a record high of
$1,984.66. U.S. gold futures  GCv1  settled mostly unchanged at
$1,986.30.
    "The pullback is just technical because we're so close to
$2,000 level and there's profit taking and strengthening of the
dollar has also caused gold to pause here," said Bob Haberkorn,
senior market strategist at RJO Futures.
    "I think a trade through $2,000 is waiting on to see what
the U.S. Congress does."
    Investors await signs of an agreement on U.S. coronavirus
aid legislation that lawmakers are struggling to hammer out.
 urn:newsml:reuters.com:*:nL2N2F22O5
    Bullion has surged about 30% so far this year, supported
mainly by lower interest rates and widespread stimulus by global
central banks to ease the economic blow from the pandemic. 
    Weighing on gold, the dollar  .DXY  rose 0.3% against
rivals, making bullion expensive for holders of other
currencies, and U.S. manufacturing activity neared a 1-1/2-year
high in July.  USD/   urn:newsml:reuters.com:*:nN9N26W018
    Virus cases have topped 18 million globally, with major
cities announcing fresh restrictions to curb infections.
 urn:newsml:reuters.com:*:nL4N2AY3AS  urn:newsml:reuters.com:*:nL8N2C60GZ
    "There's no doubt that the backdrop remains highly
constructive, with negative real yields for the foreseeable
future. We've subsequently revised up our 6–12 month target to
$2,300 per ounce," ANZ analysts wrote in a note dated Friday.
    "Even so, we're mindful that if economic sentiment improves
in coming quarters, the hurdle for continued growth in investor
demand may make the path to this level an arduous one."
    Silver  XAG=  eased 0.4% to $24.26 per ounce, platinum
 XPT=  rose 1.1% to $916.66, and palladium  XPD=  was flat at
$2,091.11.

 (Reporting by Sumita Layek in Bengaluru; editing by Jonathan
Oatis, Tom Brown and Richard Chang)
 ((Sumita.Layek@thomsonreuters.com; Within U.S. +1 646 223 8780,
Outside U.S. +91 8061822693; Reuters Messaging:
Sumita.Layek.thomsonreuters.com@reuters.net))

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