PRECIOUS-Gold steadies above $1,800 on rising virus fears, U.S.-China tensions

* SPDR Gold Trust holdings rise to over 7-year highs
* U.S. economy faces longer recovery from pandemic - Fed
* Interactive graphic tracking global spread of coronavirus:
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(Updates prices)
By Brijesh Patel
July 15 (Reuters) - Gold prices steadied on Wednesday to
hold firm above the psychological level of $1,800, as worries
over surging coronavirus cases and simmering U.S.-China tensions
cemented demand for the safe-haven metal.
Spot gold XAU= was little changed at $1,808.85 per ounce
by 0658 GMT. U.S. gold futures GCv1 eased 0.2% to $1,808.40.
"Demand appears firm for gold on any dips to the $1,800
regions for now, with investors hedging COVID-19 risks,
especially after the renewed lockdown in California," said
Jeffrey Halley, a senior market analyst at OANDA.
Although the mood on Wall Street turned upbeat, the record
amounts of loan loss provisions from banks overnight and
comments from the Federal Reserve are a cause of concern for
bullish investors, Halley added. Federal Reserve officials warned that the U.S. economy faces
a longer recovery from the pandemic, and economic pain could
still worsen as cases surge across the country, leading many
states to temporarily halt the reopening of their economies.
Adding to worries over economic recovery, U.S. President
Donald Trump signed an executive order ending preferential
treatment for Hong Kong and also shut the door on "Phase 2"
trade negotiations with China. The resultant boost to safe-haven demand helped gold
maintain its positive trajectory despite a strong rally in U.S.
stocks overnight. MKTS/GLOB .N
Reflecting increased investor interest in gold, holdings of
SPDR Gold Trust GLD rose 0.2% to 1,206.89 tonnes on Tuesday,
their highest since April 2013. GOL/ETF
The Bank of Japan kept monetary policy steady on Wednesday.
On the technical side, a bullish target of $1,831 per ounce
has been resumed for spot gold, as it seems to have continued
its uptrend, said Reuters technical analyst Wang Tao. TECH/C
Elsewhere, palladium XPD= rose 0.4% to $1,967.38 per
ounce, platinum XPT= fell 0.2% to $824.44 and silver XAG=
edged 0.1% higher to $19.21.

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