PRECIOUS-Gold gains over 1% on dollar retreat, U.S. stimulus hopes

* Spot gold headed for weekly gain of 0.8%
* Silver up 2.5% for the week
* Dollar index down for second straight week
* Interactive graphic tracking global spread of coronavirus:
https://graphics.reuters.com/world-coronavirus-tracker-and-maps/

(Updates prices)
By Eileen Soreng
Oct 9 (Reuters) - Gold prices rose over 1% on Friday and
were headed for a second straight weekly gain due to a weaker
dollar, with renewed optimism over a new U.S. coronavirus relief
package bolstering the metal's appeal as an inflation hedge.
Spot gold XAU= climbed 1.1% to $1,914.06 per ounce by 0808
GMT and was up 0.8% for the week.
U.S. gold futures GCv1 were up 1.2% at $1,917.80.
The dollar index .DXY dropped against rivals and was on
track to fall for a second straight week. USD/
"With renewed hopes for another fiscal stimulus, we saw the
dollar decline, inflation expectations pick up and risk
returning to the table. All these factors are pushing gold
higher," said Howie Lee, an economist at OCBC Bank.
Talks resumed between House Speaker Nancy Pelosi and
Treasury Secretary Steven Mnuchin over the coronavirus aid plan.

A widening lead for Democratic presidential candidate Joe
Biden was also seen as opening the way for a big economic
stimulus.
Gold, considered a hedge against inflation and currency
debasement, has gained nearly 26% this year, boosted by
unprecedented stimulus globally to cushion the pandemic's
economic impact.
"Should spot gold be able to notch a higher high past the
$1,920 resistance level, that should confirm its recent uptrend
over the past fortnight and assure its grip on the $1,900 handle
for the near future, provided dollar doesn't throw a wrench into
the works," said FXTM market analyst Han Tan.
Mirroring the metal's appeal, gold-backed exchange traded
funds added more than 1,000 tonnes of bullion worth $60 billion
to their stockpile in the first nine months of 2020, the World
Gold Council said on Thursday. Silver XAG= rose 2.1% to $24.32 per ounce and was up 2.5%
for the week. Platinum XPT= gained 2.2% to $880.96 and
palladium XPD= was 1.3% higher at $2,403.21.