(Adds comment, details and updates prices)
* Tokyo considers lockdown, Britain hints at tougher
restrictions
* China's Dec factory activity growth slows
* Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa
By Sumita Layek
Jan 4 (Reuters) - Gold prices started the new year on a high
by notching an eight-week peak after surpassing the key $1,900
level on Monday, as a surge in COVID-19 cases and prospects of
tougher coronavirus control measures lured investors to the
safe-haven metal.
Spot gold rose 1.1% to $1,919.07 per ounce by 0246
GMT, having hit its highest since Nov. 9 at $1,920.09, while
U.S. gold futures climbed 1.5% to $1,923.50.
A business survey on Monday showed that activity growth in
China's vast industrial sector had slowed, raising doubts about
swift global economic rebound. Investors also looked forward to
data from the United States and Europe that is due later in the
day.
"Some potentially challenging macro data adds support for
gold. The December PMIs could show elemental weakness, given the
fact that COVID-19 is still ravaging livelihoods in the United
States and Europe," said Dominic Schnider, head of commodities
and APAC forex at UBS Wealth Management in Hong Kong.
The dollar remained weaker against rivals, making
gold cheaper for other currency holders, while Nikkei was off
the 30-year high milestone as possible tightening in coronavirus
emergency rules for Tokyo weighed on sentiment.
British Prime Minister Boris Johnson hinted at tougher
lockdown restrictions, further lifting bullion's allure.
"A return to normal, thanks to the vaccines, at the earliest
is in the second half of the year. That means monetary policy
needs to be loose and that kind of environment can still entice
people to hold gold as an insurance asset in the portfolio,"
Schnider said.
Markets now await U.S. Federal Reserve's minutes of the
latest meeting on Wednesday for clues on policy outlook.
Investor focus was also on Tuesday's Georgia runoff
elections that will decide the control of the U.S. Senate, and
the likely fate of President-elect Joe Biden's legislative
agenda.
Silver gained 2.6% to $27.03 an ounce. Platinum
rose 1.6% to $1,085.22 and palladium climbed 0.6%
at $2,462.70.
(Reporting by Sumita Layek in Bengaluru; Editing by
Ramakrishnan M. and Sherry Jacob-Phillips)
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