PRECIOUS-Gold slips as dollar rebounds; set for second weekly decline

* $1,860/OZ could be a test for gold - analyst
* Eurozone economic recovery stutters in August
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3aIRuz7
in an external browser

(Adds comments, updates prices)
By Nakul Iyer
Aug 21 (Reuters) - Gold fell as much as 1.6% on Friday as
the dollar bounced back, denting bullion's appeal and setting it
on track for a second straight weekly decline.
Spot gold XAU= fell 0.3% to $1,937.81 per ounce by 1322
GMT, while U.S. gold futures GCcv1 dropped 0.4% to $1,937.80
per ounce.
For the week, gold is down 0.3%, having slumped more than 3%
earlier this week.
"The dollar has made a lot ground over the past few days and
it really has taken the edge off gold," said OANDA analyst Craig
Erlam, adding that while on the upside $2,000 is now a big
barrier and $1,860 could be a bit of test prior to that.
Against a basket of currencies, the dollar gained 0.6%,
making gold more expensive for holders of other
currencies. USD/
"For the time being we have seen the high in gold... until
something happens either on the U.S. stimulus front in terms of
the relief package or the U.S.-China tensions take a very
positive or negative turn," said David Madden, market analyst at
CMC Markets UK.
Bullion's fall came despite data signalling the euro zone's
economic recovery from its deepest downturn on record stalled
this month. Data also showed that activity, notably in the service
sector, slowed in Germany this month. Adding to doubts over a swift economic rebound, U.S. Federal
Reserve officials on Wednesday warned the recovery faced a
highly uncertain path. "We are above $1,900 so I wouldn't be too fearful. I think
this is going to be the end of the dollar rally and it's just
going to be a correction in the wider upper trend which is still
intact," Madden added.
Elsewhere, silver XAG= fell 2.3% to $26.60 per ounce, but
was poised for a weekly rise of nearly 1%.
Platinum XPT= 1.7%, to $902.62 per ounce, while palladium
XPD= fell 0.4% to $2,173.50 per ounce.