(Updates prices)
* SPDR gold holdings jump to 7-year high
* Palladium hovers around more-than 1-month low
* For an interactive graphic tracking the global spread, open https://tmsnrt.rs/3aIRuz7 in an external browser
By Brijesh Patel
May 6 (Reuters) - Gold prices fell on Wednesday as the dollar rose to its highest in more than a week and easing of coronavirus-driven restrictions by many countries improved investor appetite for risky assets and dulled demand for bullion.
Spot gold XAU= was down 0.4% to $1,698.96 per ounce by 0957 GMT. U.S. gold futures GCcv1 fell 0.2% to $1,708.10.
"A lack of jewellery demand, and very positive sentiment in the equity markets as economies are re-opening is pressuring gold prices," Commerzbank (DE:CBKG) analyst Eugen Weinberg said.
Many countries like Italy, Germany and the United States are tentatively easing lockdowns. MKTS/GLOB
Further denting gold's appeal, the dollar index .DXY rose 0.4% to a more than one-week high.
Gold prices had ended higher in the previous three sessions as uncertainty about the global economy remained with the virus still spreading and as U.S.-China trade tensions re-surfaced.
U.S. President Donald Trump urged China to be transparent about the origin of the virus as his administration weighs new tariffs on Beijing for its handling of the virus. the trend remains bullish, as investors are still buying gold as insurance in case of a second wave of coronavirus, while central banks are forced to print large quantities of money to mitigate the crisis," ActivTrades chief analyst Carlo Alberto De Casa said in a note.
The coronavirus, which has infected more than 3.68 million people globally, has battered global growth and prompted nations to unleash massive fiscal and monetary measures to limit economic damage.
Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.
Reflecting investor interest in gold, holdings in the world's largest gold-backed exchange-traded fund (ETF), SPDR Gold Trust GLD , rose 0.4% to 1,076.39 tonnes on Tuesday, the highest level since April 2013. GOL/ETF
Market participants are now waiting for the ADP (NASDAQ:ADP) National Employment Report on private U.S. payrolls due later in the day.
Elsewhere, silver XAG= gained 0.1% to $15.03 per ounce and platinum XPT= dropped 0.5% to $760.55.
Palladium XPD= slipped 0.3% to $1,796 per ounce after hitting its lowest in more than a month on Tuesday. Prices of the metal, widely used in auto catalytic converters, have plunged nearly 40% from a record high hit on Feb. 27.
Prices of platinum group metals could fall 15-20% in the near term on a rising surplus, although it could be seen as a longer-term buying opportunity, Citigroup (NYSE:C) said in a note. SPDR gold holding jump to 7-year high IMAGE
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