PRECIOUS-Gold eases on stronger dollar, virus woes cap losses

* China GDP grows 3.2% y/y in Q2, June retail sales fall
* European Central Bank policy decision due at 1145 GMT
* GRAPHIC-2020 asset returns: http://tmsnrt.rs/2jvdmXl
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(Recasts, updates prices)
By Arpan Varghese
July 16 (Reuters) - Gold prices eased on Thursday due to a
stronger U.S. dollar, although concerns over rising coronavirus
cases and simmering U.S.-China tensions kept bullion close to a
near nine-year high.
Spot gold XAU= was down 0.3% to $1,805.62 per ounce by
0705 GMT, just $12 shy of its highest since September 2011 hit
last week. U.S. gold futures GCcv1 fell 0.3% to $1,807.90.
The dollar index .DXY rose 0.1% against its rivals, making
gold more expensive for holders of other currencies. USD/
Data out of China showed its economy grew 3.2% in the second
quarter from a year earlier, while retail sales unexpectedly
fell again last month, pointing to waning consumer demand.
Michael McCarthy, chief strategist at CMC Markets, said the
data was mixed and gold's elevated levels reflected concerns
from some segments of investors about the global economic growth
outlook for the rest of the year.
The positive readings from China failed to help risk
sentiment hit by a growing Sino-U.S. rift over the control of
advanced technologies and civil liberties in Hong Kong.
MKTS/GLOB
"Asset markets are trading in reasonably tight correlations,
so the gold price is tracking behaviour in broader financial
markets," IG Markets analyst Kyle Rodda said.
"From a technical point of view, support at $1,800 is
holding well and indicates that price is still committed to its
uptrend."

Safe-haven gold has risen more than 19% so far this year,
also benefiting from low interest rates and widespread stimulus
as it's seen as a hedge against inflation and currency
debasement, although market participants are still divided on
the outlook for inflation.
"It remains questionable how sustainable the 'liquidity on'
rally is for gold," Stephen Innes, chief market strategist at
financial services firm AxiCorp, said in a note.
Investor focus now shifts to the European Central Bank's
policy decision due at 1145 GMT. Elsewhere, palladium XPD= dropped 0.5% to $1,971.58 per
ounce, platinum XPT= lost 0.5% to $827.83 and silver XAG=
slipped 1% to $19.18.

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