PRECIOUS-Gold hits 1-week high ahead of key U.S presidential debate

* Dollar index .DXY slips 0.2%
* Market awaits Trump- Biden debate at 2100 ET (0100 GMT)
* Platinum undervalued and has room for further upside-
analyst
* Interactive graphic tracking global spread of coronavirus:
https://graphics.reuters.com/world-coronavirus-tracker-and-maps/

(Recasts, adds comments, updates prices)
By Nakul Iyer
Sept 29 (Reuters) - Gold steadied on Tuesday, having earlier
its highest in almost a week as the dollar retreated, while
investors waited for the first U.S. presidential debate and
further developments on a new U.S. coronavirus relief bill.
Having risen as high as $1,889.86, spot gold XAU= was
little changed at $1,880.11 per ounce by 1239 GMT, while U.S.
gold futures GCv1 rose 0.4% to $1,889.50 per ounce.
A slight inflow into gold-backed ETF holdings supports the
view that gold is again back in demand as a safe haven after the
fall from the highs to last week's low, said Quantitative
Commodity Research analyst Peter Fertig. GOL/ETF
While a weaker dollar and continued monetary stimulus could
push gold above $1,900 again, whether it can test new highs this
year will depend on political and economic developments in the
U.S. and if that triggers safe-haven demand, he added.
The dollar was down 0.2% against a basket of other major
currencies .DXY ahead of the 90-minute televised debate
between President Donald Trump and democratic rival, Joe Biden
at 2100 ET (0100 GMT). USD/
"The possibility of Biden doing well might exert upward
pressure on gold because it might prompt the dollar to
sell-off," said Michael Hewson, chief market analyst at CMC
Markets UK.
"If Biden does well, its a dollar negative simply because he
is less business friendly."
Investors are also keeping close tabs on the prospect for a
fiscal coronavirus package with Democratic lawmakers in U.S.
House of Representatives unveiling a $2.2 trillion relief bill,
although no date was given for a vote on the proposal.

Elsewhere, silver XAG= rose 0.3% to $23.78 per ounce,
platinum XPT= rose 0.1% to $880.17, while palladium XPD=
gained 0.8% to $2,273.12.
Platinum is undervalued and there's further room to rise
even versus gold with a price differential of roughly $1,000, an
unexpected supply deficit and record investment demand likely,
Commerzbank analyst Carsten Fritsch said.