* SPDR Gold Trust holdings at over 7-year high
* Platinum slides 3.1%; palladium down 2.1%
* For an interactive graphic tracking the global coronavirus
spread, open https://tmsnrt.rs/3aIRuz7 in an external browser
(Updates prices)
By Swati Verma
June 24 (Reuters) - Gold weakened after hitting more than a
7-1/2-year high earlier on Wednesday, with investors selling the
precious metal along with other asset classes as a global rise
in coronavirus cases led a flight to cash.
Spot gold XAU= was little changed at $1,766.21 per ounce
as of 02:08 p.m. EDT (1808 GMT), retreating from $1,779.06
earlier in the session, which was its highest since early
October 2012.
U.S. gold futures GCcv1 settled 0.4% down at $1,775.10 per
ounce.
"People are just going towards cash. They're lightening up
the investments in their portfolios," said Michael Matousek,
head trader at U.S. Global Investors, citing the rise in
COVID-19 infections.
"When it's risk-off for pretty much everything, you have
people selling gold. They're selling a little bit of everything
across the board."
Rising concerns about the coronavirus pandemic accelerating
sent global equities lower Wednesday. MKTS/GLOB
Other precious metals also fell, with silver XAG=
declining nearly 2% to $17.59 per ounce. Palladium XPD=
slipped 2.1% to $1,883.06 and platinum XPT= was down 3.1%
at$803.65.
Despite a slight pullback in prices, gold has climbed more
than 16% this year, supported by stimulus measures and interest
rate cuts by central banks.
The non-yielding metal is considered a hedge against
inflation and currency debasement.
"Long-run inflation expectations are still subdued and have
substantial room to rise," said Daniel Ghali, commodity
strategist at TD Securities.
"When you have low interest rates and rising inflation, that
means that real rates are getting suppressed and that's the
factor driving gold prices higher." Indicative of investor sentiment, holdings in SPDR Gold
Trust GLD rose 0.28% to 1,169.25 tonnes on Tuesday, its
highest since April 2013. GOL/ETF
The rise in cases of COVID-19 has spurred debate over
whether lockdowns of businesses will be reinstated, which would
mean further damage to recovering economies, said Kitco Metals
senior analyst Jim Wyckoff.
Gold as a safe-haven asset could see a further surge in
demand as a result.
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Gold's performance versus other assets https://tmsnrt.rs/31bcADJ
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