PRECIOUS-Gold edges lower from one-month high as dollar ticks up

(Updates prices)
* Gold has gained about 2.5% so far this week
* Safe-haven demand to push gold towards $2,300 next
year-Goldman
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Asha Sistla
Dec 18 (Reuters) - Gold prices retreated on Friday from a
one-month peak scaled in the previous session, as the dollar
bounced back from lows, while investors pinned hopes on a U.S.
fiscal stimulus deal.
Spot gold XAU= edged lower by 0.1% to $1,884.71 per ounce
by 1202 GMT. U.S. gold futures GCv1 fell 0.1% to $1,887.70 per
ounce.
Having reached its highest since Nov. 16 on Thursday, the
precious metal was up about 2.5% for the week and set for a
third weekly gain.
"What you're seeing in terms of the gold markets today is a
little bit of dollar strength after a very poor week for the
U.S. dollar and a very good week for gold," said Michael Hewson,
chief market analyst at CMC Markets UK.
"If you've taken out a long position in gold this week, then
you're going to want to pare back some of that heading into the
weekend ... it's sensible in the last four trading weeks of 2020
that you see a little bit of profit taking."
The dollar index .DXY rose 0.1%, just above a more than
two-year trough, dimming gold's appeal for other currency
holders. USD/
U.S. Congressional lawmakers scrambled to pass a coronavirus
aid package on Thursday, even as Republicans insisted that
expiring U.S. Federal Reserve's lending programs can't be
revived. Analysts also said gold would find support from the Fed's
promise to continue its bond-buying programme until
"substantial further progress" is seen in restoring full
employment and hitting its 2% inflation target. "Given rising inflation expectations, weakening dollar and
lofty valuations in some risky assets, demand for safe-haven
inflation hedges should remain supported next year, continuing
to push gold towards our $2,300/toz target," Goldman Sachs said
in a note.
Silver XAG= slipped 0.9% to $25.80 an ounce, platinum
XPT= rose 0.2% to $1,046.50 and palladium XPD= eased 0.3% to
$2,333.26 but was up about 0.6% for the week.