PRECIOUS-Gold hits 8-week high as tighter virus lockdowns loom

(Updates prices)
* Tokyo considers lockdown, Britain hints at tougher
restrictions
* China's Dec factory activity growth slows
* Dollar index slips
* Platinum hits highest since Sept. 2016
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Sumita Layek
Jan 4 (Reuters) - Gold prices started the new year on a high
by notching an eight-week peak on Monday, as spiking COVID-19
cases and prospects of tougher restrictions boosted the
safe-haven metal's appeal.
Spot gold XAU= rose 1.4% to $1,923.70 per ounce by 0750
GMT, having hit its highest since Nov. 9 at $1,925.29, while
U.S. gold futures GCv1 climbed 1.8% to $1,928.50.
Doubts about a swift global economic rebound rose after a
business survey showed the pace of expansion in China's
industrial sector slowed in December. Data for the United States and Europe is due later in the
day.
The potential for weaker data as COVID-19 ravages
livelihoods in the United States and Europe is supporting gold,
said Dominic Schnider, head of commodities and APAC forex at UBS
Wealth Management in Hong Kong.
The dollar .DXY slipped, making gold cheaper for other
unit holders. USD/
Bullion received a boost after Britain's prime minister
hinted at stricter curbs, while Japan said it would consider
declaring a state of emergency in its capital city area.
Investors are also watching Tuesday's runoff elections in
the U.S. state of Georgia that will decide the control of the
Senate. "Gold will go higher if the Democrats win the Senate, basis
(for) freedom to engage in more adventurous fiscal policy," said
Nicholas Frappell, global general manager at ABC Bullion.
Supporting factors from 2020 such as ultra low real interest
rates and stimulus measures will push gold higher in the first
half of the year, while the success of vaccine programmes will
also determine prices, he added.
Other commodities including oil, iron ore and copper also
kicked off 2021 on a strong note as vaccine rollouts and further
fiscal support hopes spurred demand and boosted
prices. O/R MTL/
Minutes from the U.S. Federal Reserve's latest meeting are
due on Wednesday.
Silver XAG= gained 2.8% to $27.10 an ounce, while platinum
XPT= rose 2.5% to $1,095.34, after hitting it's highest since
Sept. 2016 at $1,102.
Palladium XPD= climbed 0.2% to $2,452.87.