PRECIOUS-Gold jumps on weaker dollar, U.S. stimulus bets

* Spot gold headed for weekly gain of 0.9%
* Silver up over 2% for the week
* Interactive graphic tracking global spread of coronavirus:
https://graphics.reuters.com/world-coronavirus-tracker-and-maps/

(Updates prices)
By Sumita Layek
Oct 9 (Reuters) - Gold rose by more than 1% on Friday and
was on course for a second straight weekly gain as the dollar
weakened and renewed negotiations for U.S. stimulus prompted
investors to buy bullion as a hedge against inflation.
Spot gold XAU= was up 1.2% to $1,915.36 per ounce by 1135
GMT, up 0.9% this week. U.S. gold futures GCcv1 gained 1.4% to
$1,921.30.
"The gyrations on whether we are going to get a stimulus or
not seems to be affecting gold prices; gold has rallied on huge
stimulus from the U.S. Federal Reserve and the government, and
if that continues, it will support gold further," said Robin
Bhar, an independent analyst.
U.S. House Speaker Nancy Pelosi and Treasury Secretary
Steven Mnuchin resumed their talks over the coronavirus aid
plan, after U.S. President Donald Trump called off negotiations
earlier this week. "Investors who have a portfolio in equities, fixed income,
will also try to find ways of hedging the uncertainty on the
economy and the stimulus," Bhar added.
Gold has gained 26% this year, boosted by massive stimulus
globally to cushion the pandemic's economic impact.
The dollar .DXY fell against rivals, amid growing bets
that Joe Biden would win the U.S. presidential election and
possibly offer more stimulus after that. USD/ The prospect of a Democrat win boosts the incentive to hold
gold as a new relief package can be assembled if the ongoing
stimulus talks fall apart, said OANDA analyst Craig Erlam.
Meanwhile, gold-backed exchange traded funds added over
1,000 tonnes of bullion worth $60 billion to their stockpile in
the first nine months of 2020, the World Gold Council said.
Silver XAG= rose 2.3% to $24.36 per ounce and is up more
than 2% this week. Platinum XPT= gained 2.2% to $881.33 and
palladium XPD= climbed 2.2% to $2,423.30.