PRECIOUS-Gold firms above $1,900/oz as softer dollar boosts demand

* Dollar drops to 1-week low
* U.S. weekly jobless claims due at 1230 GMT
* Silver up over 1%, recovering from Wednesday's 2-week low
* Fed officials warn of muted U.S. growth until virus is
contained
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(Recasts, adds comments, updates prices)
By Nakul Iyer
Aug 13 (Reuters) - Gold firmed above $1,900 on Thursday as
the dollar fell, with bargain hunters betting on a resumption of
bullion's broader upwards trend attracted by its recent steep
slide from a record peak.
Spot gold XAU= was 0.7% higher at $1,930.20 per ounce by
1000 GMT, after slipping below $1,900 in choppy trade the
previous session. Prices soared to a record $2,072.50 on Friday.
U.S. gold futures GCcv1 eased 0.4% to $1,941.00 per ounce.
"The overall consensus is the price should move higher
rather than lower and that's why we see some bargain hunting,"
said Julius Baer analyst Carsten Menke, adding the mood was
still "very bullish."
Bolstering gold's appeal for those holding other currencies,
the dollar .DXY hit a one-week low, pressured by a stalemate
in Washington over additional stimulus for the U.S. economy.
USD/ Gold's dip below $1,900 "flushed out a lot of weak longs",
said Michael McCarthy, chief strategist at CMC Markets.
"The outlook remains positive in a lower interest rate
environment, particularly with the weakening dollar."
Adding to the gloomy outlook, U.S. Federal Reserve
policymakers warned U.S. growth would be muted until the
coronavirus was contained. On Wednesday, data showed Britain's economy recorded the
biggest contraction among any major economy so far in the second
quarter.
Massive money-printing by central banks and an ultra-low
interest rate environment amid worries over the economic fallout
from mounting COVID-19 cases have helped safe-haven gold rise
more than 27% so far in 2020.
But while the fundamentals are favourable, "any significant
upside from these levels would be detaching again from
fundamentally justified levels," since gold as an insurance is
still quite expensive at the moment, Julius Baer's Menke said.
Investors are now waiting for U.S. weekly jobless claims
data due at 1230 GMT, and watching for developments between the
U.S. and China ahead of trade talks on Aug. 15.
Elsewhere, silver XAG= rose 1.4% to $25.92 per ounce,
platinum XPT= gained 1.2% to $942.32 per ounce and palladium
XPD= climbed 0.3% to $2,138.05 per ounce.