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PRECIOUS-Gold hits 1-week low as positive U.S. data buoys dollar

    * Gold falls over 1% to $1,910.99/oz
    * Longer-term uptrend in gold prices still intact -analyst
    * U.S. business activity hits highest since early 2019 
    * Gold down 0.3% for the week 
    * Interactive graphic tracking global spread of coronavirus:
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 (Updates prices)
    By Sumita Layek
    Aug 21 (Reuters) - Gold dropped to its lowest in over a week
and was en route to its second straight weekly decline on
Friday, as a strong rebound in the dollar and a resurgence in
U.S. business activity dented bullion's allure.
    Spot gold        fell 0.2% to $1,939.64 per ounce by 1:43
p.m. EDT (1543 GMT), after declining over 1% to $1,910.99. U.S.
gold futures        settled unchanged at $1,947.
    For the week, gold is down 0.3% and prices have retreated
sharply from above $2,000 hit earlier this week.
    "Prices have endured a roller-coaster week amid weak
positioning, delayed stimulus package agreement, a bounce in the
U.S. dollar and real rates," said Standard Chartered analyst
Suki Cooper.
    The dollar        was up 0.6% against rivals, making gold
more expensive for holders of other currencies.       
    U.S. stock indexes rose, while U.S. Treasury yields inched
higher after data showed an uptick this month in business
activity to the highest since early 2019.                       
    "We're seeing some better than expected economic data in
some facets, yet there clearly are still concerns in regards to
the pandemic, in regards to the employment situation," said
David Meger, director of metals trading at High Ridge Futures.
    Investors also kept a close eye on the developments
surrounding U.S. coronavirus relief bill after U.S. House of
Representatives Speaker Nancy Pelosi on Thursday said she
opposed a smaller coronavirus relief bill.             
    "Barring further profit-taking, we think the longer-term
uptrend (for gold) is intact given our expectations for further
U.S. dollar weakness and the scale of stimulus, and as we expect
interest rates to remain low or negative," Standard Chartered's
Cooper said.   
    Elsewhere, silver        fell 1.9% to $26.71 per ounce but
was poised for a weekly rise of 1%.
    Platinum        was flat at $917.61 per ounce, while
palladium        eased 0.2% to $2,177.32 per ounce.

 (Reporting by Sumita Layek in Bengaluru
Editing by Alistair Bell and Steve Orlofsky)
  
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