PRECIOUS-Gold retreats as dollar gains on U.S. stimulus doubts

(Updates prices)
* Asian shares drop as U.S. stimulus talks drag on
* Goldman Sachs forecasts gold at $2,300/oz over 12-month
horizon
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

By Nakul Iyer
Oct 22 (Reuters) - Gold fell on Thursday as the dollar
recovered some lost ground after doubts emerged on whether U.S.
lawmakers could reach agreement on a new coronavirus aid package
before the November presidential election.
Spot gold XAU= fell 0.3% to $1,919.65 per ounce by 0750
GMT, after hitting more than a one-week high on Wednesday. U.S.
gold futures GCv1 slipped 0.3% to $1,923.00.
"Without stimulus, there's a lot of uncertainty and that's
driving people to be a bit cautious and move towards the U.S.
dollar," said Michael Langford, executive director at corporate
advisory and consultancy firm AirGuide.
Stimulus talks between U.S. lawmakers faced a setback on
Wednesday when President Donald Trump accused Democrats of being
unwilling to craft a compromise on aid. The news dented risk sentiment and lifted the dollar .DXY
against its rivals, making gold more expensive for holders of
other currencies. USD/ MKTS/GLOB
"The Fed is not going to ease anymore, but there's no scope
for tightening and that could put a floor under gold," said
DailyFx currency strategist Ilya Spivak, adding that the metal
was unlikely to rally or fall "catastrophically".
Widely viewed as a hedge against inflation and currency
debasement, bullion has gained 26% this year as central banks
and governments globally unveiled unprecedented stimulus
measures to cushion the economic fallout from the pandemic.
Goldman Sachs forecast gold at $2,300 an ounce over a
12-month horizon and said commodities were likely headed for a
bull market next year.
Fiscal and monetary policy in developed markets continue to
drive interest rates low and spur demand for inflation hedges,
the Wall Street bank said. Investors now await the final U.S. presidential debate
between Trump and Democrat rival Joe Biden on Thursday night,
and weekly jobless claims due at 1230 GMT.
Elsewhere, silver XAG= fell 0.5% to $24.94, platinum
XPT= gained 0.3% at $888.47 and palladium XPD= dropped 0.1%
to $2,401.73.