PRECIOUS-Gold rebounds as dollar eases; virus treatment hopes cap gains

* Global equities gain for second session
* Investors eye Fed Chair's address at Jackson Hole
* Interactive graphic tracking global spread of coronavirus:
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https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Diptendu Lahiri
Aug 24 (Reuters) - Gold prices rose on Monday as the dollar
dipped, making bullion cheaper for holders of other currencies,
but hopes for progress in the treatment of COVID-19 limited
gains in the safe-haven metal.
Spot gold XAU= was up 0.4% at $1,946.89 an ounce by 1240
GMT, having jumped 1% to $1,961.40 an ounce after early losses.
U.S. gold futures GCv1 gained 0.8% to $1,961.80.
"The dollar is softer today and, if we look at the larger
picture, the world economy is still trying to recover from the
effects of coronavirus," said Saxo Bank analyst Ole Hansen.
"Along with that, the risk of inflation continues to attract
investors to gold."
The dollar index .DXY was down 0.4% after climbing to a
more than one-week high in the previous session.
Investors are awaiting U.S. Federal Reserve Chairman Jerome
Powell's address to the bank's annual symposium in Jackson Hole,
Wyoming, on Thursday for signs of how aggressively it will seek
to handle the long-term recovery from the pandemic. "The U.S. central bank should reiterate its pledge for
ultra-low rates, providing some support for gold," Avtar Sandu,
a senior commodities manager at Phillip Futures, said in a note.
"(It) may be expected to signal greater tolerance for
above-target inflation, keeping real interest rates low."
Lower U.S. interest rates cut the opportunity cost of
holding non-yielding bullion.
Central banks worldwide have rolled out massive stimulus
measures to alleviate the economic damage caused by the COVID-19
pandemic, but that has also increased the probability of rising
inflation.
Restricting gold's advance, equity markets gained for a
second straight session after the U.S. Food & Drug
Administration authorised the use of blood plasma from patients
who have recovered from COVID-19 as a treatment for the disease.
MKTS/GLOB
Silver XAG= rose 0.8% to $26.90 an ounce, platinum XPT=
was up 0.6% at $924.29 and palladium XPD= eased 0.1% to
$2,180.18.