PRECIOUS-Gold gains as rising virus cases, easing dollar boost safe-haven appeal

* Palladium holds below record high of $2,925.14 hit on
Friday
* U.S. factory activity powered ahead in early April
* Speculators raised bullish positions in COMEX gold - CFTC

(Updates prices)
By Shreyansi Singh
April 26 (Reuters) - Gold gained on Monday, as surging
COVID-19 cases boosted the metal's safe-haven appeal, aided by a
weaker dollar ahead of the U.S. Federal Reserve's meeting this
week, while auto-catalyst palladium held below a record peak
scaled last week.
Spot gold XAU= was up 0.1% at $1,778.22 per ounce by 0707
GMT. U.S. gold futures GCv1 fell 0.1% to $1,775.70 per ounce.
"The COVID-19 situation in India and Japan is deteriorating.
So that is boiling demand for safety, resulting in higher gold
prices," said Margaret Yang, a strategist at DailyFX, adding
that an easing dollar is further supporting prices. USD/
Cases in India registered a record surge, while Japan
declared states of emergency for Tokyo, Osaka and two other
prefectures on Friday to combat a spike. Speculators raised their bullish positions in COMEX gold in
the week to April 20, the U.S. Commodity Futures Trading
Commission said on Friday. CFTC/
"On the other hand, investors are looking at very strong
U.S. economic data released on Friday," said Yang, adding higher
yields are capping gold's gains. US/
U.S. factory activity powered ahead in early April, while
retail sales jumped to a record high in March and hiring
accelerated. Market participants now await Fed's two-day policy meeting
starting on Tuesday. Although no change in policy is expected,
the focus will be on Chair Jerome Powell's press conference.
Palladium XPD= rose 1.2% to $2,889.47 per ounce, after
scaling a record peak of $2,925.14 on Friday.
"Strong industrial demand from the auto sector and investor
interest saw palladium trade to a fresh record high...
underpinned by Nornickel's lacklustre output numbers and
continued strong demand from tightening emissions standards,"
said independent analyst Robin Bhar in a note.
"Palladium has been in deficit for several years and this is
set to continue over coming years."
Silver XAG= fell 0.2% to $25.95 per ounce. Platinum XPT=
was up 0.6% at $1,237.01.