* Palladium heads for second straight weekly decline
* Silver on track for second weekly gain
* EU heads discuss next budget, 750 bln euro recovery fund
By Eileen Soreng
June 19 (Reuters) - Gold gained on Friday as concerns over a rise in coronavirus cases propped up demand for the safe-haven metal, which has benefited in recent months from monetary stimulus measures to offset the impact of the pandemic.
Spot gold XAU= was up 0.5% at $1,731.65 per ounce by 1145 GMT, while U.S. gold futures GCcv1 were 0.6% higher at $1,740.90. Spot prices reached their highest since 2012 last month at $1,764.55.
"These cases of second waves in certain locations are basically what is fuelling the pessimistic view that this recession is going to turn into a longer-lasting depression," Julius Baer analyst Carsten Menke said.
"From my point of view, (gold) is going to remain around the $1,700 level for the next few months unless we have clarity of where the economy is going."
More than 8.38 million people have been infected by the coronavirus globally, with some 400 workers being tested positive at an abattoir in northern Germany, and China reporting 32 new virus cases on Friday. surge in infections has renewed fears of a delay in economic recovery as countries reopen after coronavirus-induced lockdowns.
"A break higher would likely come if global growth fails to pick up meaningfully in the medium term, and that prompts monetary policymakers to embark on a new wave of monetary stimulus," said IG Markets analyst Kyle Rodda.
Gold prices have risen 14% so far this year, supported by safe-haven demand amid virus-led economic slowdown and unprecedented amounts of fiscal and monetary support from governments and central banks. investors' radar was the European Council's meeting to negotiate the EU recovery fund aimed at reviving the bloc's coronavirus-ravaged economies. palladium XPD= fell 0.9% to $1,907.64 per ounce and was on track for a second consecutive weekly decline.
Platinum XPT= gained 0.8% to $810.65 per ounce and was up 0.6% so far for the week.
Silver XAG= was up 0.4% at $17.58 and was on track to mark a second week of gains.