PRECIOUS-Gold inches up on coronavirus surge, U.S.-China tensions

* SPDR Gold Trust holdings rise to over 7-year highs
* U.S. stocks gain on vaccine optimism, Goldman's results
* Interactive graphic tracking global spread of coronavirus:
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https://tmsnrt.rs/3aIRuz7 in an external browser

(Adds comments, updates prices)
By Shreyansi Singh
July 15 (Reuters) - Gold prices edged up on Wednesday,
holding above the key $1,800 level, as a surge in coronavirus
cases and simmering U.S.-China tensions bolstered safe-haven
demand, but a strong equities market capped the advance.
Spot gold XAU= rose 0.2% to $1,811.41 per ounce by 1:54
p.m. EDT (1754 GMT), after earlier hitting its highest level
since July 9, at $1,814.40. U.S. gold futures GCv1 settled
mostly unchanged at $1,813.80.
"A surge in confirmed cases, particularly across the U.S.,
lockdown measures being reinstated, as well as rising
geopolitical tensions between the U.S. and China, have supported
a flight to safety in gold," said Standard Chartered analyst
Suki Cooper.
President Donald Trump on Tuesday ordered an end to Hong
Kong's special status under U.S. law, which gives preferential
economic treatment to the city, prompting Beijing to warn of
retaliatory sanctions. A rise in U.S. stocks following a strong quarterly showing
by Goldman Sachs and promising early data for a potential
COVID-19 vaccine offset some of the bullish factors for gold.
.N "Stronger equities and vaccine optimism have capped some
upside momentum in gold, supporting risk appetite, but
underlying investor interest still remains strong," Cooper
added.
The dollar .DXY fell 0.2% versus rivals, also keeping a
floor under bullion. USD/
Bullion, which is widely viewed as a hedge against inflation
and currency debasement, has risen over 19% so far this year,
mainly benefiting from lower interest rates and widespread
stimulus measures from major central banks.
Gold prices could touch $2,000 per ounce by year-end, helped
by lower real interest rates, massive fiscal stimulus and a weak
economy, said Phillip Streible, chief market strategist at Blue
Line Futures in Chicago.
Reflecting appeal for gold, holdings of the SPDR Gold Trust
GLD exchange-traded fund were near their highest level since
April 2013. GOL/ETF
Elsewhere, palladium XPD= was up 1.0% at $1,979.74 an
ounce, platinum XPT= rose 0.5% to $830.50 per ounce, and
silver XAG= gained 0.7% to $19.34.