PRECIOUS-Gold vaults to highest since October 2012 as dollar stumbles

* Gold hit $1,768.96/oz earlier in the session
* Dollar index .DXY falls 0.5%
* SPDR Gold Trust holdings at over 7-year high

(Updates prices)
By Diptendu Lahiri
June 23 (Reuters) - Gold prices surged to their highest
since October 2012 on Tuesday, driven by weakness in the U.S.
dollar and widespread monetary stimulus packages by central
banks as a jump in coronavirus cases dented the economic
outlook.
Spot gold XAU= climbed 0.7% to $1,765.99 per ounce by
01:54 p.m. ET (1754 GMT), after hitting $1,768.96, its highest
since October 2012. U.S. gold futures GCv1 settled up 0.9% at
$1,782 per ounce.
"The tsunami of stimulus coming in from everywhere is not
only inflationary but also painting a weaker picture for the
economy and making gold look attractive," said Edward Meir,
analyst at ED&F Man Capital Markets.
Gold has gained nearly 16% this year, supported by global
stimulus measures since the non-yielding metal is considered a
hedge against inflation and currency debasement.
The dollar .DXY was down 0.5% at 96.60 against a basket of
currencies, making gold cheaper for non-U.S. currency holders.
USD/
More than 9.14 million people have been reported infected by
the coronavirus globally and 473,031 have died, a Reuters tally
showed on Tuesday. Gold's gains came despite a rise in equities driven by
encouraging economic data and after U.S. President Donald Trump
tweeted that the U.S.-China trade pact was "fully intact".
MKTS/GLOB "Gold's biggest enemy right now is if other markets grab
attention and capital," said Tai Wong, head of base and precious
metals derivatives trading at BMO.
"Barring a poor close under $1,750 in the coming days, the
October 2012 high of about $1,800 should only be a matter of
time, a week, perhaps less."
Holdings in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 0.58% to 1,166.04 tonnes
on Monday, a level last seen in April 2013. Palladium XPD= was little changed at $1,938.46 per ounce,
platinum XPT= was up 0.8% at $828.73 per ounce and silver
XAG= rose 0.6% to $17.93 per ounce.