PRECIOUS-Gold eases off multi-year peak as virus surge drives cash hunt

* IMF slashes its 2020 global output forecasts
* Asian equities fall, dollar rises
* SPDR Gold Trust holdings at over 7-year high

(Adds comments, details, updates prices)
By Brijesh Patel
June 25 (Reuters) - Gold edged lower on Thursday, easing off
a near eight-year high hit in the last session, as a selloff in
equity markets driven by a surge in coronavirus cases prompted
some investors to dump assets.
Spot gold XAU= was down 0.1% at $1,760.39 per ounce as of
0307 GMT, having soared to its highest level since October 2012
of $1,779.06 on Wednesday.
U.S. gold futures GCv1 fell 0.2% to $1,771.80.
"The behavioural pattern we've seen this year is that when
stocks and energy fall, there is a rush for cash across all
asset classes, including gold," said Jeffrey Halley, senior
market analyst at OANDA.
However, he added, "any short-term correction is likely to
be a slow grind lower, and not a rush for the exit doors," as
safe haven buying and low interest rates provide support for
bullion.
Indicative of gold's overall appeal, which has driven a 16%
jump in prices this year, holdings of the world's biggest
gold-backed exchanged traded fund, the SPDR Gold Trust GLD ,
hit their highest in over seven years. GOL/ETF
Asian stock markets fell on surging U.S. coronavirus cases
and an International Monetary Fund downgrade to economic
projections, driving inflows into alternate safe haven dollar.
MKTS/GLOB USD/
Gold has, on occasion, moved in tandem with equity markets
this year, with steep selloffs driving a rush for cash and as
traders met margin calls.
Three U.S. states reported record increases in new cases on
Wednesday. There has been a rise in cases elsewhere as well, including
Brazil, Latin America and India, which is also the world's
second biggest bullion consumer. On the physical side, jewellery consumption is likely to
remain modest, "limiting the scope for further increases in
prices," said National Australia Bank economist John Sharma.
Palladium XPD= jumped 0.8% to $1,878.45 per ounce,
platinum XPT= gained 0.1% to $800.29 and silver XAG= rose
0.2% at $17.55.