PRECIOUS-Gold dips as investors await Powell speech

* Fed Chair to discuss policy at 1300 GMT
* Interactive graphic tracking global spread of coronavirus:
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(Updates prices)
By Diptendu Lahiri
Aug 27 (Reuters) - Gold fell on Thursday as investors
reassessed their positions, booked profits after a more than 1%
jump in the previous session and anticipated fresh stimulus
announcements from U.S. Federal Reserve Chairman Jerome Powell.
Spot gold XAU= was down 0.7% at $1,940.77 per ounce by
1138 GMT, after rising 1.3% on Wednesday. U.S. gold futures
GCv1 were down 0.2% to $1,949.30 per ounce.
Powell is scheduled to discuss the Fed's annual conference
of central banks at 1310 GMT, with investors watching for
inflation and monetary policy clues.
"Gold has rallied for quite some time now and the
expectation of more stimulus packages are increasing the
possibilities of an economic recovery," said OANDA analyst Craig
Erlam.
The Fed has cut interest rates to near zero and introduced
unparalleled measures to stimulate the coronavirus-hit economy,
contributing to gold's 28% rise this year.
Carsten Menke, analyst at Julius Baer, said gold prices
might see only "momentary volatility" when Powell speaks.
"Cutting interest rates further doesn't look seem to be on
the plate. What investors are expecting is more stimulus
packages."
Lower interest rates minimise the opportunity cost of owning
non-yielding bullion and weigh on the dollar, rendering gold
cheaper for buyers transacting in other currencies.
Gold also benefits as a perceived hedge against possible
inflation and currency debasement triggered by the
money-printing by global central banks to ease the economic blow
from the pandemic.
The metal's latest retreat came despite a cautious mood in
European equity markets ahead of the Fed's Jackson Hole virtual
conference. MKTS/GLOB
Elsewhere, silver XAG= was down 0.8% to $27.29 per ounce,
palladium XPD= was off nearly 1% at $2,176.30 and platinum
XPT= was up 0.4% to $932.88 per ounce.