PRECIOUS-Gold languishes at 2-month low as dollar rallies

* Silver slumps as much as 5.4%
* U.S. weekly jobless claims due at 1230 GMT
* Interactive graphic tracking global spread of coronavirus:
https://graphics.reuters.com/world-coronavirus-tracker-and-maps/

(Adds comments, updates prices)
By Eileen Soreng
Sept 24 (Reuters) - Gold fell on Thursday to its lowest
level in more than two months, crippled by a robust dollar,
while investors fretted over uncertainties surrounding further
stimulus measures to support a sluggish economy in the United
States.
Spot gold XAU= fell 0.3% to $1,857.36 per ounce at 0747
GMT. Earlier in the session, it hit its lowest since July 22 at
$1,847.99. U.S. gold futures GCv1 were down 0.4% at $1,860.70.
The dollar index .DXY hit a two-month peak against rival
currencies. A firmer dollar makes bullion more expensive for
holders of other currencies. USD/
"Gold can't shake off this dollar dominance, that is
reverberating across all asset classes," said Edward Moya, a
senior market analyst at OANDA.
Meanwhile, U.S. Federal Reserve officials tried to convince
investors they will keep monetary policy easy for years to allow
unemployment to fall, but analysts say immediate support is
unlikely before the U.S. elections. "The stimulus side of this trade is looking rather bleak in
the short term," Moya said.
Optimism over a nascent economic recovery soured as data
showed business activity in the United States and Europe cooled
in September as the pandemic continued to batter activities.
"We might see gold decline to $1,800-$1,780 on the downside,
but beyond that once markets start focusing on its safe-haven
appeal, gold should start to rally again," said Harshal Barot,
senior research consultant for South Asia at Metals Focus.
Investors are now awaiting U.S. weekly jobless claims data,
due later in the day, which is expected to show claims fell
slightly but remained at high levels. Elsewhere, silver XAG= fell as much as 5.4% to $21.64, its
lowest in more than two months, and was last down 2.9% at
$22.21. Platinum XPT= firmed 0.5% to $842.50 per ounce and
palladium XPD= was flat at $2,221.13.