PRECIOUS-Gold falls below $1,800/oz on firm dollar, ECB policy pause

* Dollar index gains 0.3%
* ECB keeps policy on hold, says 'it is working'
* Investors firmly holding gold positions medium/long
term-analyst
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Shreyansi Singh
July 16 (Reuters) - Gold fell below the key $1,800 level on
Thursday as the dollar strengthened and the European Central
Bank kept its monetary policy on hold, prompting some investors
to lock in profits.
Spot gold XAU= fell 0.8% to $1,796 per ounce by 2:24 pm
EDT (1824 GMT). U.S. gold futures GCv1 settled down 0.7% to
$1,800.30.
"The key narrative is that central banks are on hold for
some time and more stimulus is coming but it's going to be much
later. That's taking a little bit of the bullish trend that gold
has firmly been in recently," said Edward Moya, senior market
analyst at broker OANDA.
ECB President Christine Lagarde said the central bank will
use its stimulus firepower fully even as the euro zone economy
shows some signs of rebounding from its pandemic-induced
recession. Also weighing on prices, the dollar .DXY edged 0.3%
higher, making bullion expensive for holders of other
currencies. USD/
"Some investors are locking profits but medium to long
investors are firmly maintaining their position and they're
looking to buy on any significant dip," Moya added.
Spot gold price hit $1,817.71 an ounce, its highest since
September 2011, last week and has risen 18% so far this year.
Bullion, widely considered a hedge against inflation and
currency debasement, has gained on the back of massive stimulus
measures and low interest rates, although market participants
are still divided on the outlook for inflation. The rise in U.S.-China tensions and an uptick in coronavirus
infections in some major economies is keeping gold fundamentally
supported, said Kitco Metals senior analyst Jim Wyckoff.
The recent surge in COVID-19 cases in the United States has
forced states such as California to shut down again, sparking
fears of more business damage. In other metals, palladium XPD= rose 0.4% to $1,988.92 an
ounce, while platinum XPT= lost 1.2% at $822.42, and silver
XAG= slipped 1.2% to $19.15.