* World stocks drop to a more than one-week low
* IMF predicts deeper global recession due to coronavirus
* Gold losing out safe-haven appeal to dollar
* For an interactive graphic tracking the global coronavirus spread, open https://tmsnrt.rs/3aIRuz7 in an external browser
By Nakul Iyer
June 25 (Reuters) - Gold prices edged higher on Thursday as a spike in coronavirus cases dented demand for riskier assets, although gains were capped by rival safe-haven buying of the dollar.
Spot gold XAU= was up 0.1% at $1,763.29 per ounce as of 1309 GMT. U.S. gold futures GCcv1 eased 0.1% to $1,773.70.
Gold hit its highest since October 2012 at $1,779.06 on Wednesday before settling 0.3% lower, breaking a 3-session winning streak.
World stocks spluttered to their lowest in over a week after a surge in U.S. coronavirus cases and an IMF warning of a near 5% plunge in the global economy this year. MKTS/GLOB negativity in stock markets is propping up gold, "whenever we see these kind of movements, it does tend to favour the dollar," said OANDA analyst Craig Erlam.
The U.S. dollar held firm on Thursday as rising trade tensions coupled with fears of a second wave of coronavirus infections fuelled demand for the safe-haven currency. USD/
The surge in infections has kept investors on tenterhooks, with Australia and three U.S. states reporting a spike in cases as well as Brazil, Latin America and India, the world's second biggest bullion consumer. fact that gold has come under slight pressure nonetheless could be a sign of renewed forced selling to generate liquidity, as has often happened during phases of risk aversion in the past three months," Commerzbank (DE:CBKG) said in a note.
"What is more, it is noticeable that falls in the gold price are still being viewed by investors as buying opportunities," it said. "We therefore regard the latest weakness in the gold price as temporary and envisage new highs in the near future."
In other precious metals, palladium XPD= fell 1.2% to $1,841.62 per ounce, platinum XPT= was flat at $799.88 and silver XAG= rose 0.8% to $17.66.