PRECIOUS-Gold set for fifth weekly gain as virus fears support safe havens

(Updates prices)
* 10-year U.S. Treasuries drop to over 2-month low
* GRAPHIC-2020 asset returns: http://tmsnrt.rs/2jvdmXl
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

By Nakul Iyer
July 10 (Reuters) - Gold rose on Friday and held above the
key $1,800 level, en route to a fifth straight weekly gain as a
jump in U.S. COVID-19 infections underpinned demand for
safe-haven assets.
Spot gold prices XAU= rose 0.2% to $1,805.94 per ounce by
1216 GMT, and were up about 1.8% for the week, having soared to
their highest since Sept. 2011 at $1,817.71 on Wednesday. U.S.
gold futures GCcv1 were up 0.4% at $1,811.70 per ounce.
"The higher COVID numbers in the U.S. and the implications
this might have on the economic recovery has been influencing
price action," said Cameron Alexander, an analyst at
Refinitiv-owned metals consultancy GFMS.
Gold exchange-traded fund (ETF) inflows continue to rise,
indicating investors are hedging against further pullbacks in
equities, he said. GOL/ETF
The United States on Wednesday reported the largest one-day
increase in coronavirus cases by any country since the start of
the pandemic, while cases have jumped in major cities such as
Melbourne, Tokyo and Hong Kong. The spike in cases soured risk sentiment, sending world
stocks and oil prices down with concerns over fresh lockdowns in
the United States alarming investors. MKTS/GLOB USD/
Adding to the support, 10-year U.S. Treasuries US10YT=RR
dropped to their lowest since late April.
"Gold could even set a new record high this year if another
bolt of risk aversion courses through the markets, especially if
the green shoots of the global economic recovery are snuffed out
by another round of lockdowns across major economies," said FXTM
market analyst Han Tan in a note.
Data showed U.S. shoppers were staying out of stores in
areas where cases are rising the most, dampening hopes of a
quick recovery in the world's biggest economy.
However, gold's longer-term technical patterns suggest a
slowing in the momentum, with positioning pointing to a market
very long on gold and implying a short-term pullback is
possible, IG Markets analyst Kyle Rodda said.
Palladium XPD= fell 0.3% to $1,937.82 per ounce, platinum
XPT= slipped 0.2%, to $831.59 per ounce, and silver XAG= was
little changed at $18.66 per ounce.