PRECIOUS-Gold retreats more than 1% as dollar halts slide

* Gold up more than 28% so far this year
* Fed pledges to keep interest rates near zero
* Spot gold may test support at $1,943/oz - technicals
* Interactive graphic tracking global spread of coronavirus:
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(Adds comment, updates prices)
By Eileen Soreng
July 30 (Reuters) - Gold fell on Thursday as the dollar
stalled its slide, with analysts saying bullion may face more
resistance in its bid to breach the $2,000 level.
Spot gold XAU= was 1.0% lower at $1,951.42 per ounce by
1220 GMT, having earlier fallen as much as 1.3% to $1,944.76.
U.S. gold futures GCcv1 eased 0.4% to $1,946.50.
The dollar found some support after the U.S. Federal Reserve
in a policy update offered no real clues about its next moves
beyond a reiteration of its easy monetary stance.
Dollar bears had speculated the Fed might loosen its
approach to inflation. USD/ "Post-FOMC we are getting a little bit of a better bid on
the dollar, although its still pretty much on its knees, and
because of that we've seen a bit of correction in gold," said
Afshin Nabavi, senior vice president at precious metals trader
MKS SA.
Gold jumped to near a record high on Wednesday after the Fed
pledged to keep interest rates near zero. But initial gains in
equities led by Wall Street overnight, and now a bounce in rival
safe-haven the dollar - making gold less attractive to holders
of other currencies - cut short the climb. MKTS/GLOB
But the non-yielding metal, which benefits from low interest
rates and is considered insurance against currency debasement
and high inflation, is still up over 28% this year, supported by
strong investment demand from Europe and North America, which
has offset weak physical consumption in top Asian hubs.
"The macro environment is still quite friendly for gold -
there's plenty of geopolitical risks and the monetary
accommodation is still very significant across many central
banks," Bank of China International analyst Xiao Fu said.
"It's just that $2,000 is very strong psychological
resistance level and people are a bit nervous about gold's
valuation." USD/
Prices may test support at $1,943 per ounce, said Reuters
technical analyst Wang Tao. TECH/C
Other metals were also lower, with silver XAG= shedding
4.3% to stand at $23.37 per ounce, platinum XPT= down 1.7% to
$908.87 and palladium XPD= off 4.4% at $2,063.41.

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