PRECIOUS-Gold gains on dollar weakness, dovish Fed policy hopes

* U.S. Fed's policy announcement on Wednesday
* Dollar index falls 0.3%
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Sumita Layek
Sept 14 (Reuters) - Gold jumped 1% on Monday as the dollar
weakened, while expectations around the U.S. Federal Reserve
maintaining its dovish monetary policy this week further boosted
the safe haven metal's allure.
Spot gold XAU= rose 0.7% to $1,954.68 per ounce by 1:55
p.m. EDT (1755 GMT). U.S. gold futures GCv1 settled up 0.8% at
$1,963.7.
"Gold is rising as the dollar is under quite a bit of
pressure. We also saw Steven Mnuchin indicating that they want
some kind of fiscal stimulus deal done, so that would further
weaken the dollar," said Phillip Streible, chief market
strategist at Blue Line Futures in Chicago.
The dollar .DXY fell 0.3% against rivals, bolstering
gold's appeal for investors holding other currencies. USD/
U.S. Treasury Secretary Mnuchin said there still could be a
deal with the U.S. Congress for more federal coronavirus-related
aid. Bullion has risen 29% this year prompted by massive stimulus
from global central banks to combat the impact of the
coronavirus pandemic.
Investors are now eyeing the Fed's policy decision due on
Wednesday.
"The Fed is expected to maintain the target rate of
inflation, we're going to run 2% for some time and they will
increase Quantitative Easing (QE), so gold should remain
supported on that," Streible said.
Market participants are also awaiting Bank of Japan and Bank
of England policy decisions due on Thursday.
Meanwhile, the European Union ramped up pressure on Prime
Minister Boris Johnson to step back from breaking the Brexit
divorce treaty.
Gold will continue to move higher on political uncertainties
in the United States, Brexit and overall weak economic
conditions in the world, said Jeffrey Christian, managing
partner of CPM Group.
Silver XAG= rose 1.6% to $27.16 per ounce, platinum XPT=
gained 2.7% to $950.14, while palladium XPD= shed 0.7% to
$2,304.21.