REFILE-PRECIOUS-Gold's rally loses steam as investors drift towards dollar

(Corrects garbled RICs in last two paragraphs in July 9 story)
* Gold overbought after it surpassed $1,800 level- analyst
* Silver eases after rallying to 10-month high
* GRAPHIC-2020 asset returns: http://tmsnrt.rs/2jvdmXl
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

By Swati Verma
July 9 (Reuters) - Gold prices retreated on Thursday, a day
after vaulting to nearly nine-year highs, as investors embraced
the safe-haven greenback in the face of record U.S. coronavirus
cases.
Spot gold XAU= fell 0.6% to $1,799.23 per ounce by 1:36
p.m. ET (1736 GMT), having surged to its highest since September
2011 at $1,817.71 on Wednesday. U.S. gold futures GCv1 settled
down 0.9% at $1,803.8.
"Gold has been overbought quite a bit after it surpassed the
$1,800 level and now we are seeing some investors selling off,"
said Edward Meir, analyst at ED&F Man Capital Markets.
"The dollar is also climbing a bit, so that is weighing on
gold as well. But there are no fundamental reasons as such for
the pullback."
The dollar rallied from a four-week low as U.S. stocks fell
with market sentiment turning cautious as the United States hit
another record high on new coronavirus cases. USD/
U.S. Federal Reserve officials on Wednesday raised fresh
doubts about the durability of the U.S. recovery, while new
business surveys highlighted developing risks from the
relentless coronavirus pandemic. "The $1,800 remains a strong psychological resistance level.
Although bulls have cut through this level like a hot knife
through butter, weakness below this point could trigger a
decline back towards $1,765," said FXTM analyst Lukman Otunuga.
"If $1,800 proves to be a new reliable support, this could
open the gates towards $1,820 and $1,828."
Central banks worldwide have slashed interest rates in
recent months, providing in some cases unprecedented amounts of
stimulus to help soften the blow to the economy from the
pandemic. Stimulus tends to boost gold, which is considered a hedge
against inflation and currency debasement.
"These stimulus (measures) are not going away very soon. If
we see the global supply chain, it has been massively disrupted
and that disruption adds to inflation as well," said Ryan McKay,
a commodity strategist at TD Securities.
Among other metals, silver XAG= declined 0.9% to $18.61 an
ounce having earlier hit its highest since September 2019 at
$19.02.
Palladium XPD= climbed 1.1% to $1,936.51, while platinum
XPT= slid 2.3% to $824.41.