PRECIOUS-Gold drops as dollar extends gains; focus on Fed commentary

(Updates prices)
* Fed's Powell says economy's path 'highly uncertain'
* Fed's Evans sees 'recessionary dynamics' without fiscal
aid
* Dollar jumps to highest in nearly 2 months
* Interactive graphic tracking global spread of coronavirus:
https://graphics.reuters.com/world-coronavirus-tracker-and-maps/

By Swati Verma
Sept 22 (Reuters) - Gold fell for a second straight session
on Tuesday as the dollar climbed to a near two-month peak, with
investors keeping a close eye on remarks from U.S. Federal
Reserve officials on the state of the economy.
The path ahead for the economy remains uncertain and the
U.S. central bank will do more if needed, Federal Reserve Chair
Jerome Powell told a congressional panel on Tuesday.
Separately, Chicago Federal Reserve President Charles Evans
said the U.S. economy risks recession, if the U.S. Congress
fails to pass a fiscal package. Spot gold XAU= had fallen 0.4% to $1,904.34 per ounce by
1:53 p.m. EDT (1753 GMT), reversing earlier gains. U.S. gold
futures GCv1 settled down 0.2% at 1,907.60 per ounce.
A steep sell-off across asset classes on Monday dragged gold
down to its lowest level since Aug. 12, at $1,882.70.
"When we see gold and equities down both at the same time,
investors need cash. Precious metals are always a good source of
raising cash. It was a factor yesterday but today we think it's
mostly dollar and technical," said Chris Gaffney, president of
world markets at TIAA Bank.
"The dollar is maintaining its strength and fundamentally
that is weighing on gold prices."
The dollar .DXY notched a high since late-July, which
along with Washington's lack of progress on reaching a fiscal
stimulus agreement weighed on bullion. USD/
Gold has pared gains since hitting a record peak in August
as the U.S. Congress for weeks has remained deadlocked over the
size and shape of its next coronavirus response bill.
Expectations are that the death of Justice Ruth Bader
Ginsburg will create additional division between the Democrats
and the Republicans, which would mean a smaller chance of a
stimulus plan coming soon, said David Meger, director of metals
trading at High Ridge Futures.
In other metals, silver XAG= fell 1.1% to $24.45, platinum
XPT= dropped 1.6% to $867.67 and palladium XPD= was down
2.2% to $2,223.36.