* World shares hit five-month peak
* Gold hovering below Monday's record $1,984.66/oz peak
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser
(Adds graphic, adds comments, updates prices)
By Eileen Soreng
Aug 4 (Reuters) - Gold was little changed on Tuesday,
hovering below the previous session's record peak as fears over
the pace of economic recovery amid surging coronavirus cases
were offset by upbeat U.S. manufacturing data.
Spot gold XAU= was down 0.1% at $1,975.69 per ounce by
1240 GMT, about $9 shy of the all-time high hit in the previous
session. U.S. gold futures GCv1 rose 0.4% to $1,993.40.
Gold is in "wait-and-see mode" for new impulses after the
PMI data, which signalled that the economy has found a bottom in
the manufacturing sector and an improvement could be seen, said
Quantitative Commodity Research analyst Peter Fertig.
World shares hit five-month highs, helped by strong U.S.
manufacturing data which showed activity accelerated to its
highest in nearly 1-1/2 years in July. MKTS/GLOB Manufacturing activity across the euro zone also expanded
for the first time since early 2019 last month. Investors now await progress in talks on a new coronavirus
relief bill with Congress, which are set to resume on Tuesday.
The first reaction to the new measure might be gold
price-negative because it will support risk appetite,
Commerzbank analyst Carsten Fritsch said.
However, mid-to-long term it will add to already high debt
levels and push real interest rates further into negative
territory, supporting gold, he added.
"Any price dip is seen as a buying opportunity... The rise
towards and above $2,000 is only a matter of time," Fritsch
added.
Coronavirus infections continue to surge, with global cases
crossing 18.35 million. The World Health Organization warned
that the road to normality would be long, with some countries
requiring a reset of strategy. Further casting gloom on economic recovery, friction between
the United States and China intensified, with Beijing rebuking
President Donald Trump's moves to force China-owned TikTok into
a sale of its U.S. operations. Silver XAG= was up 0.4% to $24.35 per ounce, platinum
XPT= eased 0.1% to $915.05 and palladium XPD= rose 0.4%
to$2,091.49.
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Gold hovers near record high as surging virus cases raise
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