PRECIOUS-Gold firms on coronavirus woes, U.S. stimulus hopes

* Silver could rally to $40/oz over next 12 months- Citi
* Pelosi optimistic of U.S. fiscal aid before elections
* Interactive graphic tracking global spread of coronavirus:
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https://tmsnrt.rs/3aIRuz7 in an external browser

(Recasts, adds comments, updates prices)
By Eileen Soreng
Oct 19 (Reuters) - Gold prices rose on Monday underpinned by
concerns of a worsening COVID-19 pandemic, while hopes for a new
U.S. stimulus package before the November presidential election
also supported prices of the precious metal.
Spot gold XAU= gained 0.6% to $1,909.90 per ounce by 0725
GMT, while U.S. gold futures GCv1 were up 0.3% at $1,912.40.
"The resurgence of COVID-19 in Europe has increased the
possibility of a double dip recession and a protracted economic
slowdown," said Harshal Barot, a senior research consultant for
South Asia at Metals Focus.
"Slowing economic growth will mean that we would see more
monetary and fiscal stimulus down the line."
Gold, widely viewed as a hedge against inflation and
currency debasement, has risen about 25% this year as
governments and central banks unleashed a wave of stimulus
measures to limit economic damage from the pandemic.
Worldwide coronavirus cases crossed 40 million on Monday,
according to a Reuters tally, while much of Europe enacts new
restrictions to curb the outbreak. "We expect gold to trade cautiously around $1,900 level for
now, the game changer being whether we can get (U.S) fiscal
stimulus in the next 48 hours," said Howie Lee, an economist at
OCBC Bank.
U.S. House Speaker Nancy Pelosi said on Sunday that
differences remained with the Trump administration on a
wide-ranging relief package but that she was optimistic
legislation could be pushed through before Election Day.
However, she acknowledged an agreement would have to come
within 48 hours for that to happen.
Elsewhere, silver XAG= climbed 2.4% to $24.74, having hit
a near one-week peak.
Citi in a note said it expects silver prices to rally to
$40 over the next 12 months, on the back of sustained investor
demand and a recovery in industrial consumption during 2021.
Platinum XPT= rose 1.2% to $870.69 per ounce and palladium
XPD= was 0.9% higher at $2,351.94.