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PRECIOUS-Gold bounces back above $1,900 as UK data renews recession fears

    * No sign that gold has bottomed out yet - analyst
    * Spot gold up 1.6%, Silver jumps over 5%
    * Britain's economy shrinks by record 20.4% in April-June
    * Interactive graphic tracking global spread of coronavirus:
open
tmsnrt.rs/3aIRuz7 in an external browser

 (Recasts, adds comment, updates prices)
    By Brijesh Patel
    Aug 12 (Reuters) - Gold bounced back above $1,900 per ounce
on Wednesday, as weak UK data renewed fears over a
coronavirus-driven economic slump and helped bullion erase
initial losses fuelled by a resurgent dollar.
    Spot gold        jumped 1.6% to $1,942.45 per ounce by 0816
GMT, rebounding from a 2.5% drop in early Asian trade. U.S. gold
futures         rose 0.2% to $1,949.40. Silver        also
joined the rally, adding 5.6% to $26.17.
    Underscoring the economic damage caused by the pandemic,
data showed Britain's economy shrank by a record 20.4% between
April and June, the biggest contraction reported by any major
economy so far.             
    "Finally, they've officially announced that they're into a
recession for the first time since the financial crisis. This
has supported the sharp rebound in gold and silver," said Jigar
Trivedi, commodities analyst at Mumbai broker Anand Rathi
Shares.
    But European equities largely shrugged off the UK data since
it was mostly in line with expectations.      
    A resurgent dollar, however, weighed on gold, with investors
keeping a close eye on a stalemate in U.S. stimulus talks and
tensed U.S.-China relations.                    
    "The froth has been blown off the top of the gold market,
and now fundamental price discovery is going on," said IG
Markets analyst Kyle Rodda. "There's no sign that gold's
bottomed yet."
    Despite suffering the biggest one-day drop in more than
seven years on Tuesday, gold's gains for the year stood at about
28%, as investors buy it as a hedge amid fears of currency
debasement, with central banks flooding the global economy with
money to ease the pandemic blow. 
    With policies likely to remain "loose for the foreseeable
future," gold could move back towards $2,000, said ING analyst
Warren Patterson.
    Platinum        gained 2.5% to $953.50 and palladium       
rose 3.5% to $2,164.66. 

 (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu
Sahu and Amy Caren Daniel)
  
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