PRECIOUS-Gold on back foot as investors flock to safety of dollar

* Gold losing out safe-haven appeal to dollar
* Falls in gold being viewed as buying opportunities
-Commerzbank
* For an interactive graphic tracking the global coronavirus
spread, open https://tmsnrt.rs/3aIRuz7 in an external browser

(Adds comments, details; Updates prices)
By Diptendu Lahiri
June 25 (Reuters) - Gold prices edged lower in volatile
trade on Thursday, as a spike in coronavirus cases and mounting
economic tolls drove investors to the safety of the U.S. dollar
and pressured risky assets.
Spot gold XAU= was down 0.2% at $1,758.70 per ounce as of
11:19 a.m. ET (1519 GMT). U.S. gold futures GCcv1 eased 0.4%
to $1,768.20.
"The market is taking into account what kind of
ramifications the second wave of the virus could have on the
economy," said David Meger, director of metals trading at High
Ridge Futures.
Despite a slight pullback, "the (gold) market seems well
supported due to the second wave of coronavirus in the United
States and around the world, and the economic concerns related
to that is elevating safe-haven demand," Meger added.
U.S. stocks slipped on Thursday as investors were unnerved
by an alarming rise in new coronavirus cases and high weekly
jobless claims number. .N
The weekly jobless claims report on Thursday showed millions
continue to collect unemployment checks more than a month after
many businesses resumed operating following virus-led lockdowns.
Other data underscored expectations that the economy would
contract in the second quarter at its deepest pace since the
Great Depression.
Gains in bullion were, however, cut by safe-haven flows into
the greenback. The dollar index .DXY was up 0.3% at 97.39.
Australia and some U.S. states reported a spike in cases as
well as Latin America and India, the world's second biggest
bullion consumer. "Falls in the gold price are still being viewed by investors
as buying opportunities," Commerzbank said in a note, adding,
"We therefore regard the latest weakness in the gold price as
temporary and envisage new highs in the near future."
In other precious metals, palladium XPD= fell 0.8% to
$1,848.19 per ounce, platinum XPT= was down at 0.4% at $796.64
and silver XAG= rose 0.9% to $17.68.