PRECIOUS-Gold climbs as U.S. riots spark safe-haven rush

* Silver jumps over 2% to three-month high
* SPDR Gold Trust holdings at fresh 7-year peak on Friday
* Specs cut gold bullish positions in week to May 26 - CFTC
* For an interactive graphic tracking the global coronavirus
spread, open https://tmsnrt.rs/3aIRuz7 in an external browser

(Adds comments, updates prices)
By Harshith Aranya
June 1 (Reuters) - Gold rose on Monday as riots in major
U.S. cities rattled investors already reeling from strained
Sino-U.S. ties and boosted demand for the safe-haven metal, with
a weaker dollar lending further support.
Spot gold XAU= gained 0.8% to $1,739.59 per ounce by 0802
GMT, having surged 1% earlier. U.S. gold futures GCcv1 inched
up 0.1% to $1,752.50.
The dollar index .DXY fell 0.5% against its rivals. USD/
"The protests are obviously not a positive sign given the
fragility of the U.S. economy at the moment, and the need to get
out from under lockdown," said Michael McCarthy, chief
strategist at CMC Markets.
Protesters have flooded the streets in the United States
over the death of George Floyd in police custody.
The closely packed crowds and demonstrators not wearing
masks have sparked fears of a resurgence of COVID-19, which has
killed more than 101,000 Americans. Meanwhile, in Asia, China's state media and the Hong Kong
government lashed out on Sunday at U.S. President Donald Trump's
pledge to end Hong Kong's special status if Beijing imposes new
national security laws on the city. Geopolitical tensions are rising from the blame game between
the West and China, and as the dispute in Hong Kong intensifies,
Fitch Solutions said in a note.
This will "catalyse gold bulls throughout 2020 at least",
as investors seek security in safe-haven assets, it added.
Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 0.3% to 1,123.14 tonnes
on Friday, a fresh seven-year high. GOL/ETF
Elsewhere, silver XAG= rose 2.4% to $18.26 per ounce, its
highest since Feb. 25. Speculators cut their bullish positions in COMEX gold and
increased them in silver contracts in the week to May 26, data
showed on Friday. CFTC/
Palladium XPD= rose 1.1% to $1,965.39 per ounce, and
platinum XPT= ticked up 0.1% to $838.82.