PRECIOUS-Gold gains as dollar softens ahead of Fed meeting

* Fed policy announcement on Wednesday
* Platinum hits near one-month high
* Interactive graphic tracking global spread of coronavirus:
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https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices, adds comment)
By Nakul Iyer
Sept 15 (Reuters) - Gold rose to its highest in nearly two
weeks on Tuesday, propelled by a softer dollar and expectations
the U.S. Federal Reserve will reinforce its accommodative
monetary policy.
Spot gold XAU= rose 0.6% to $1,968.94 per ounce by 1157
GMT, having earlier climbed to $1,971.71, its highest since
Sept. 2. U.S. gold futures GCcv1 rose 0.7% to $1,977.10 per
ounce.
"The dollar weakness is playing its part but also some
anticipation of continued support from the FOMC (Federal Open
Market Committee) has helped the market," said Saxo Bank analyst
Ole Hansen, adding that gold lacked an immediate catalyst to
push it higher.
The dollar index .DXY slipped, making gold more attractive
for buyers holding other currencies, as participants awaited the
Fed's two-day policy meeting ending on Wednesday.
While the "most dovish scenario of the U.S. Fed is already
reflected in the price of gold," the central bank's guidance on
how long it could keep rates low and average inflation forecasts
are crucial, said ABN Amro analyst Georgette Boele.
Unprecedented monetary stimulus packages and a low interest
rate environment have led bullion to gain 29.7% so far this year
and scale record highs above $2,000 an ounce, as it is seen as a
hedge against inflation and currency debasement. "The fact that gold prices remain below $2,000 even though
the dollar has been under pressure in recent weeks is a signal
of fatigue ... ETF (Exchange Traded Fund) positions are at
extreme levels and speculators seem hesitant to increase
substantially their positions," ABN Amro's Boele said.
Elsewhere, platinum XPT= rose 1.4% to $967.14 per ounce,
after hitting its highest since Aug. 18 at $968.75.
Platinum could outperform gold by about 10%, if the World
Platinum Investment Council's forecasts for a supply deficit
comes to pass and the gold to platinum ratio breaks out of the
2.02-2.20 range, said Saxo Bank's Hansen.
Silver XAG= gained 1.2% to $27.49 per ounce and palladium
XPD= was up by 1.2% at $2,340.66.

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