PRECIOUS-Gold firms on U.S. protests, standoff with China

* Silver jumps to over three-month high
* SPDR Gold Trust holdings at fresh 7-year peak on Friday
* For an interactive graphic tracking the global coronavirus
spread, open https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Eileen Soreng
June 1 (Reuters) - Gold prices rose on Monday supported by
increasing friction between Washington and Beijing and protests
in the United States over racism.
Spot gold XAU= rose 0.6% to $1,736.40 per ounce by 01:44
p.m. ET (1744 GMT). Prices earlier rose 1% to hit an over
one-week high of $1,744.19.
U.S. gold futures GCv1 settled down 0.1% at $1,750.3
"There are growing concerns that the U.S.-China Phase One
trade deal is about to get ripped-off," said Edward Moya, a
senior market analyst at broker OANDA, adding that widespread
street protests in the United States had raised concerns of
another wave of coronavirus cases.
The dollar .DXY fell to its lowest since mid-March,
further supporting bullion prices. USD/
China has told state-owned firms to halt purchases of major
U.S. farm products, after Washington said it would eliminate
special treatment for Hong Kong. Meanwhile in the United States, National Guard troops were
deployed in 15 states and Washington, D.C. in an attempt to
quell protests over the death of an unarmed black man in police
custody. Gold is seen as a safe-haven asset during times of political
and economic uncertainty.
However, restricting bullion's gains was optimism over a
potential COVID-19 vaccine and easing lockdowns, which
underpinned world stocks near three-month highs. MKTS/GLOB
On the technical side, "the spot price is now getting close
to resistance placed at $1,750. A clear climb above the previous
highs ($1,747 on closing and $1,765 intraday) would open space
for further rallies," ActivTrades chief analyst Carlo Alberto De
Casa said in a note.
Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose to a fresh seven-year
high on Friday. GOL/ETF
Elsewhere, silver XAG= gained 2.1% to $18.21 per ounce,
having touched its highest since Feb. 25 earlier at $18.36.
Palladium XPD= rose 0.8% to $1,959.55 per ounce, and
platinum XPT= was 1% higher at $846.80.