PRECIOUS-Gold dips along with equities, strong dollar weighs

(Updates prices)
* U.S. retail sales collapse as virus keeps consumers at
home
* Commerzbank sees gold reaching $1,800/oz at year's end
* Palladium to be under-supplied this year and next
-StanChart
* Interactive graphic tracking the global spread: open https://tmsnrt.rs/3aIRuz7
in an external browser

By Sumita Layek
April 15 (Reuters) - Gold prices fell on Wednesday, a day
after scaling over seven-year highs, as the dollar firmed and
investors booked profits, although concerns of a global
recession put a floor under prices.
Spot gold XAU= fell 0.6% to $1,716.79 per ounce, by 1:52
p.m. (1752 GMT). On Tuesday, prices had jumped as much as 1.9%
to their highest since November 2012 at $1,746.50.
U.S. gold futures GCv1 settled down 1.6% at $1,740.20.
"Gold has been following equity markets, and equities are
selling off. That's causing volatility and along with a stronger
U.S. dollar, it's getting folks to adjust their portfolios in
response," said Bart Melek, head of commodity strategies at TD
Securities.
Global stocks fell as oil prices dropped and warnings of the
worst global recession since the 1930s underscored the economic
damage done by the new coronavirus. MKTS/GLOB
The dollar, meanwhile, rebounded on safe haven demand amid
growing concerns that the damage to the global economy from the
outbreak will be protracted. USD/
U.S. retail sales suffered a record drop in March, data
showed earlier. "Before gold can really take off and have the big macro and
central bank policy measures bring it up to our view of $2,000,
there has to be some stability, because anytime there is a need
to get cash and liquidity, gold is going to be sideswiped by
that," Melek added.
Countries and central banks across the world have stepped up
measures to combat the global heath crisis, which has infected
over 2 million people and killed 131,100. In the latest move to cushion its economy, China cut a key
medium-term interest rate to record lows, paving the way for a
similar reduction in benchmark loan rates. Despite the decline in prices on Wednesday, Commerzbank
analyst Carsten Fritsch believes gold could cost $1,800 per
ounce at year's end.
"The severe impact of the global lockdown on economies and
financial markets, the flood of money released by central banks
and governments and the ballooning sovereign debt point to
ongoing robust demand for gold as a safe haven and last-resort
lifeline."
Silver XAG= was down 2.9% at $15.36, while platinum XPT=
was flat at $774.55.
Palladium XPD= dipped 1.5% to $2,185.85 per ounce.
"We continue to expect the palladium market to be
undersupplied this year and next year, despite latest industry
expectations for auto sales to plummet by at least 14%,"
Standard Chartered Bank analysts said in a note.