* $1,860/OZ could be a test for gold - analyst
* Eurozone economic recovery stutters in August
* Interactive graphic tracking global spread of coronavirus: in an external browser (Adds comments, updates prices)By Nakul IyerAug 21 (Reuters) - Gold fell as much as 1.6% on Friday asthe dollar bounced back, denting bullion's appeal and setting iton track for a second straight weekly decline.Spot gold fell 0.3% to $1,937.81 per ounce by 1322GMT, while U.S. gold futures dropped 0.4% to $1,937.80per ounce.For the week, gold is down 0.3%, having slumped more than 3%earlier this week."The dollar has made a lot ground over the past few days andit really has taken the edge off gold," said OANDA analyst CraigErlam, adding that while on the upside $2,000 is now a bigbarrier and $1,860 could be a bit of test prior to that.Against a basket of currencies, the dollar gained 0.6%,making gold more expensive for holders of othercurrencies. "For the time being we have seen the high in gold... untilsomething happens either on the U.S. stimulus front in terms ofthe relief package or the U.S.-China tensions take a verypositive or negative turn," said David Madden, market analyst atCMC Markets UK.
Bullion's fall came despite data signalling the euro zone'seconomic recovery from its deepest downturn on record stalledthis month. Data also showed that activity, notably in the servicesector, slowed in Germany this month. Adding to doubts over a swift economic rebound, U.S. FederalReserve officials on Wednesday warned the recovery faced ahighly uncertain path."We are above $1,900 so I wouldn't be too fearful. I thinkthis is going to be the end of the dollar rally and it's justgoing to be a correction in the wider upper trend which is stillintact," Madden added.Elsewhere, silver fell 2.3% to $26.60 per ounce, butwas poised for a weekly rise of nearly 1%.
Platinum 1.7%, to $902.62 per ounce, while palladium fell 0.4% to $2,173.50 per ounce.
(Reporting by Nakul Iyer in Bengaluru; Editing by Mark Potterand Christina Fincher)