PRECIOUS-Gold soars to all-time high as dollar dive boosts safety rush

* Silver rises to near 7-year peak
* Dollar falls to a near two-year low
* U.S. consulate in Chengdu closed as of Monday morning -
China
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Brijesh Patel
July 27 (Reuters) - Gold surged to record highs on Monday as
an intensifying U.S.-China row and a weaker dollar sent
investors scurrying to the safety of bullion to hedge against
the risks to a global economy already reeling from the COVID-19
pandemic.
Spot gold XAU= rose 1.7% to $1,934.06 per ounce by 0802
GMT after hitting a record high of $1,943.93. U.S. gold futures
GCv1 gained 1.7% to $1,929.40.
Silver XAG= too joined the rally, jumping 5.5% to $24,
after hitting its highest since September 2013 at $24.36.
Gold is in "perfect condition to move higher," said ANZ
commodity strategist Soni Kumari, as central banks push for
liquidity amid the pandemic.
"Further support is also coming from falling yields, weaker
dollar and geopolitical tensions between the U.S. and China. The
safe-haven demand (for gold) has been rising while there is none
for USD anymore."
The dollar fell to a near two-year low .DXY on increased
bets the U.S. Federal Reserve could flag another accommodative
policy shift when it meets this week, implying lower interest
rates for longer. USD/ China seized the U.S. consulate in Chengdu, retaliating to
the closure of its own consulate in Houston.
Meanwhile, COVID-19 cases surged to over 16.13 million
globally, driving expectations for more stimulus to stem the
economic blow. "As long as the (virus) situation gets worse, the market is
discounting more stimulus for a longer period of time and in
bigger quantities," said Edward Meir, analyst at ED&F Man
Capital Markets. Non-yielding gold is considered a hedge against inflation
and currency debasement, with analysts also pointing to massive
inflows into gold-backed exchange traded funds as a driver
behind its 28% rally in 2020. GOL/ETF CFTC/
However, "strong developments" on the COVID-19 vaccine front
and an easing of Sino-U.S. tensions could prompt a correction,
ANZ's Kumari said. Platinum XPT= rose 2.8% to $939.63 and palladium XPD=
gained 0.4% to $2,227.60.

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Silver soars to 7-year hghs on gold's coattails https://tmsnrt.rs/3jHwHAq
Gold soars as dollar dips https://tmsnrt.rs/39CUs8c
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