 "Gold up for fifth day as coronavirus anxiety, weaker yields lift demand")
By Brijesh Patel
(Reuters) - Gold extended its winning streak to a fifth session on Tuesday, supported by a drop in U.S. bond yields and worries that a spike in the COVID-19 Delta variant cases could hinder a recovery in the global economy.
Spot gold was up 0.4% at $1,793.85 per ounce by 0906 GMT, after hitting a peak since Aug. 6 in the session.
U.S. gold futures rose 0.4% to $1,796.
"Lower U.S. yields and the fact that equity markets are slightly softer on the back of the weakness in Asia markets is helping gold," said Michael Hewson, chief market analyst at CMC Markets UK.
"Some governments are slightly over reacting to COVID-19 cases, raising concerns that there could be another economic slowdown," Hewson said, adding that it meant central bank policy tightening might not happen.
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Benchmark 10-year Treasury yields dipped to a near two-week low, translating into reduced opportunity cost of holding non-interest bearing gold. [US/]
A surge in COVID-19 cases in Asia and elsewhere sapped risk sentiment in wider financial markets. [.EU] [MKTS/GLOB]
Concerns over China's regulations for its once-freewheeling internet sector and turmoil in Afghanistan also kept investors on the edge.
Gold is considered a safe store of value during times of political and financial uncertainty. But analysts have said that the impact of the Afghan crisis on bullion has so far been muted.
Focus now shifts to the U.S. retail sales data due at 1230 GMT as well as minutes of the Federal Reserve's July meeting on Wednesday, which will be scanned for clarity on the tapering timeline.
Gold's strong daily close above $1,792 could open the doors towards $1,800 and $1,830, Lukman Otunuga, senior research analyst at FXTM, said in a note.
Elsewhere, silver rose 0.2% to $23.87 per ounce, having hit a high since Aug. 9 at $23.95.
Platinum eased 0.2% to $1,020.51, while palladium fell 0.5% to $2,591.76.
(Reporting by Brijesh Patel in Bengaluru; Editing by Anil D'Silva)