PRECIOUS-Gold slips as stronger dollar, risk-on sentiment weighs

(Updates prices)
* Dollar index at four-month peak
* Global share markets hit record highs

By Brijesh Patel
Feb 11 (Reuters) - Gold prices dipped on Tuesday as the
dollar held firm and investors opted for riskier assets after a
fall in the number of new confirmed cases of coronavirus in
China eased some of fears over global economic impact.
Spot gold XAU= was down 0.3% at $1,567.26 per ounce by
1:43 p.m. EST (1843 GMT), having touched its highest since Feb.
4 at $1,576.76 on Monday.
U.S. gold futures GCcv1 settled down 0.6% at $1,570.10 an
ounce.
"Gold is slightly down in tandem with another round of new
highs across the board in equity markets, as there has been some
conversation that the impacts from coronavirus are slightly
overdone," said David Meger, director of metals trading at High
Ridge Futures.
However, "dips in gold are still being fairly bought very
readily ... given the strength seen in global equities and the
fact that gold continues to hold up so well."
Global financial markets scaled new highs as the number of
new coronavirus cases slowed in China and the country's
factories slowly returned to work. MKTS/GLOB
After more than 1,000 deaths, the China's foremost medical
adviser on the epidemic said infections may be over by April,
with the number of new cases already declining in some places.
Further limiting gold's appeal, the dollar .DXY hit a
four-month high against a basket of rivals on safety buying and
Federal Reserve Chair Jerome Powell's upbeat view of the U.S.
economy. USD/
The U.S. central bank kept benchmark interest rates
unchanged at its January policy meeting, citing moderate
economic growth and a strong jobs market.
But in testimony before a U.S. congressional committee,
Powell cited a potential threat from the virus and concerns
about the economy's long-term health. "Gold's longer-term bullish backdrop will remain primarily
supported on physical demand from central banks and rising risks
to the global growth that will trigger another wave of worldwide
stimulus," Edward Moya, a senior market analyst at broker OANDA
said in a note.
Gold, which is used as an insurance against economic risks,
tends to appreciate on expectations of lower interest rates,
which reduce the opportunity cost of holding non-yielding
bullion.
Among other precious metals, palladium XPD= fell 0.6% to
$2,339.26 an ounce, silver XAG= dropped 0.7% to $17.63, while
platinum XPT= rose 0.9% to $969.43.