PRECIOUS-Gold jumps 2%, silver up 6% as dollar slides

(Updates prices)
* Dollar trades near 2-1/2 year low
* Rising industrial demand to help silver outperform gold-
analyst
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Shreyansi Singh
Dec 1 (Reuters) - Gold jumped more than 2% on Tuesday,
rebounding from a five-month low in the last session, and silver
soared over 6%, as the dollar slid, with U.S. stimulus bets
adding to bullion's appeal as an inflation hedge.
Spot gold XAU= climbed 2.1% to $1,814.99 per ounce by 1:54
p.m. EST (1854 GMT). U.S. gold futures GCcv1 settled up 2.1%
at $1,818.90.
Gold plunged to $1,764.29 on Monday, a trough since July 2,
driven by a rush to riskier assets.
"We saw gold recapture the $1,800 level and a lot of that
has to do with the weakening dollar trade," said Edward Moya,
senior market analyst at OANDA.
"The unwind of the gold trade has run its course" and we are
likely to see more efforts from the U.S. Congress to support the
economy.
Making gold more attractive to investors holding other
currencies, the dollar .DXY fell on expectations of more U.S.
stimulus. USD/
In remarks released on Monday, Federal Reserve Chair Jerome
Powell highlighted challenges of production and mass
distribution before the economic impact of a vaccine becomes
clear. The Fed is going to remain fairly accommodative, OANDA's
Moya said.
Gold, considered a hedge against inflation and currency
debasement, has risen over 19% this year, helped by
unprecedented stimulus to help coronavirus-hit economies.
"The bottom was in for gold now and we see prices north of
$2,000 next year," said Daniel Ghali, commodity strategist at TD
Securities.
"Gold's actually now in a new regime" with vaccines a likely
catalyst for higher inflation expectations as the economy
recovers, supporting gold longer term, especially amid lower
real rates, Ghali added.
Silver XAG= was up 6% at $23.95 an ounce, after rising to
a one-week high earlier in the session.
Rising industrial demand should help silver outperform gold,
Fawad Razaqzada, market analyst with ThinkMarkets, said in a
note.
Platinum XPT= rose 3.6% to $999.96 and palladium XPD=
rose 1.7% to $2,412.93.