PRECIOUS-Gold slides on dollar rally as U.S. stimulus remains elusive

* Wall Street slumps as virus cases surge
* Dollar climbs to highest in over a week
* Silver drops to three-week low
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

(Updates prices)
By Brijesh Patel
Oct 28 (Reuters) - Gold fell as much as 2% and silver nearly
6% on Wednesday as investors flocked to the dollar in the
absence of signs of any imminent U.S. fiscal stimulus measures
to ease the economic blow from the COVID-19 pandemic.
Spot gold XAU= hit its lowest since Sept. 28 at $1,869.21
per ounce before recovering to $1,879.03 by 01:34 p.m. EDT (1734
GMT). U.S. gold futures GCcv1 settled down 1.7% to $1,879.20.
Silver XAG= slumped as far as $23, its lowest since Oct.
7.
"The metals were so dependent on more stimulus at this point
and the bear camp is fully in control right here," said Bob
Haberkorn, senior market strategist at RJO Futures.
"Overall, the gold market is lower on a strengthening dollar
due to the lack of stimulus measures and risk-off mentality
heading into this election."
The dollar jumped 0.6% to a more than one-week high against
a basket of other major currencies .DXY , with the prospect of
fresh European lockdowns weighing heavily on the euro and
accelerating a tumble in equities. .N MKTS/GLOB
Despite recent volatility, gold, considered a hedge against
inflation and currency debasement amid unprecedented global
stimulus, is still up about 25% so far this year.
Analysts said that although precious metals prices had
dipped, the move was not yet being precipitated by a rush to
cover losses elsewhere and meet margin calls, as happened in
March.
U.S. President Donald Trump said on Tuesday that an economic
relief deal would likely come after the Nov. 3 election.
He also questioned the integrity of the U.S. Presidential
election, saying it would be "inappropriate" to take extra time
to count the millions of ballots cast by mail. David Meger, director of metals trading at High Ridge
Futures said the global pick-up in coronavirus cases was also
just as important. "All of those are responsible for the pick up in volatility
and the downside in metals prices."
Platinum XPT= fell 1.4% to $866.66 and palladium XPD= ,
shed 3.5% to $2,249.04.

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