PRECIOUS-Gold slips as Fed policy moves whet risk appetite

* Asian stocks track Wall Street higher
* Gold up more than 28% so far this year
* Fed pledges to keep interest rates near zero
* Spot gold may test support at $1,943/oz - technicals
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(Adds technicals, updates prices)
By Brijesh Patel
July 30 (Reuters) - Gold dropped on Thursday after a pledge
by the U.S. Federal Reserve to support its coronavirus-ravaged
economy buoyed risk sentiment, with analysts saying the metal is
facing resistance in the short term to breach the $2,000
psychological level.
Spot gold XAU= was down 0.7% to $1,957.17 per ounce by
0531 GMT. U.S. gold futures GCcv1 eased 0.1% to $1,950.60.
"This price action points to a garden variety pullback –
profit taking," said IG Markets analyst Kyle Rodda, adding that
the retreat was mostly technical in nature, with gold failing to
break above resistance around $1,980.
"In the short term, we might see any move higher above that
($1,980) level, towards $2,000, as something of a grind."
Gold jumped on Wednesday after the Fed pledged to keep
interest rates near zero as the rapid rise in coronavirus cases
dampened hopes for an economic recovery.
Low interest rates reduce the opportunity cost of holding
non-yielding bullion.
Fed Chair Jerome Powell promised the central bank would "do
what we can, and for as long as it takes" to support the U.S.
economy. Limiting gold's advance, Asian stocks followed Wall Street
higher. MKTS/GLOB
"The likelihood of risk paring given market expectations
were not met by the Federal Open Market Committee meeting is why
gold has pulled back a little bit," said Stephen Innes, chief
market strategist at financial services firm AxiCorp.
"This is just a natural reaction to a crowded trade."
Gold, which has risen over 28% so far this year, is well
supported by a weaker dollar, a worsening pandemic and
likelihood of more stimulus, analysts noted. USD/
Spot gold may test a support at $1,943 per ounce, as it
failed again to break a resistance at $1,982, said Reuters
technical analyst Wang Tao. TECH/C
Silver XAG= dropped 2.1% to $23.90 per ounce, platinum
XPT= fell 0.3% to $921.76 and palladium XPD= slipped 1.6% to
$2,122.44.

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