PRECIOUS-Gold zooms to all-time peak as safety rush gathers steam

* Silver notches up fresh seven-year peak
* Dollar falls to 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 Nakul Iyer
July 27 (Reuters) - Gold stormed to a record high on Monday
as investors sought refuge from the possible hit to a
pandemic-stricken global economy from an escalation in the
U.S.-China spat, which pummelled the dollar.
Spot gold XAU= hit a record high of $1,945.16 per ounce,
and rose 1.8% to $1,934.62 by 1:38 p.m EDT (1738 GMT). U.S. gold
futures GCv1 settled up 1.8% to $1,931.
Silver XAG= also rallied, jumping as much as 8% to $24.57,
its highest since August 2013, and was up 6.9% at $24.31 per
ounce.
"The dollar is losing its safe-haven appeal and you're going
to continue to see gold surge as the dollar sinks," said Edward
Moya, senior market analyst at broker OANDA.
"Everything is clicking for gold. There are high prospects
the Federal Reserve is going to ramp up their efforts to repair
the economy and the virus uncertainty is going to mean that the
stimulus trade is going to remain."
The dollar index .DXY hit a two-year low on the U.S.-China
tensions and concerns about the U.S. economy as COVID-19
infections show no signs of slowing in the world's largest
economy. USD/ Gold has risen 28% so far this year, marking a shift from
before the pandemic, when the bullion had to compete with other
safe havens such as the dollar, especially amid Sino-U.S.
tensions, which had limited inflows into gold.
China on Monday took over the premises of the U.S. consulate
in the southwestern city of Chengdu in retaliation for Beijing's
ouster last week from its consulate in Houston, Texas.
U.S. Senate Republicans are expected to unveil a $1 trillion
coronavirus aid package. Investors will also eye the U.S. Fed's
meeting starting Tuesday, where it could flag another
accommodative policy shift. 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 rally. GOL/ETF CFTC/
"A cure for COVID-19 has the potential to revive global risk
sentiment and turbocharge investor confidence," FXTM analyst
Lukman Otunuga said.
"The tidal wave of optimism from such a positive development
could send market players sprinting towards riskier assets at
the expense of safe-havens."
Platinum XPT= rose 2% to $932.33 per ounce and palladium
XPD= jumped 3.4% to $2,295.29.

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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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