* Gold's trajectory still positive -analysts
* Interactive graphic tracking global spread of coronavirus:
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(Adds graphic, updates prices)
By Nakul Iyer
Aug 11 (Reuters) - Gold slid more than 2% on Tuesday as the
dollar clung to recent gains and risk appetite was boosted by an
expected U.S. stimulus deal, prompting investors to take profits
from bullion's explosive run to a record high.
Spot gold XAU= fell 2% to $1,987.49 an ounce by 1053 GMT,
retreating from last week's record high of $2,072.50. U.S. gold
futures GCcv1 declined 2.1% to $1,996.40.
"The retreat was inevitable," said StoneX analyst Rhona
O'Connell, adding that gold has been technically overbought for
a while.
That gold did not advance further despite rising
geopolitical tensions showed that a lot of supportive elements
for gold have already been priced in, she said.
Adding to gold's headwinds, global equities hit multi-month
highs on expectations that U.S. Congress will agree a massive
stimulus deal while looming trade talks raised hopes of an
easing in tensions between the United States and China.
MKTS/GLOB .EU The dollar, too, clung to recent gains, making gold less
attractive for investors holding other currencies. DXY USD/
Beyond technical triggers, the fundamental reason for gold's
moves is that the dollar weakness of the past few weeks has
paused, said Saxo Bank analyst Ole Hansen.
But most analysts still expect a positive trajectory for
gold, with the metal having gained 31% this year as
unprecedented money printing by central banks and near-zero
interest rates pushed investors into bullion as a hedge against
possible currency debasement and inflation.
The recent "washout of speculative long positioning sets
gold up for a more balanced rally going forward", said Jeffrey
Halley, a senior market analyst at OANDA.
In other precious metals, silver XAG= fell 3.1% to $28.25
an ounce, platinum XPT= was down 1.5% at $971.90 and palladium
XPD= dropped 2.6% to $2,161.28.
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Gold's hasty retreat https://tmsnrt.rs/33PsAN8
Gold's correction overdue? https://tmsnrt.rs/33NwQgc
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