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PRECIOUS-Gold gains on U.S. election uncertainty, economic worries

PRECIOUS-Gold gains on U.S. election uncertainty, economic worries

* Dollar hits near one-week high

* Equities hit by halted vaccine trials, stimulus talks
impasse

* Interactive graphic tracking global spread of coronavirus:
https://graphics.reuters.com/world-coronavirus-tracker-and-maps/

(Recasts, adds comments, updates prices)

By Brijesh Patel

Oct 14 (Reuters) – Gold firmed on Wednesday after last
session’s sharp drop spurred demand for the safe-haven metal
from investors worried about global economic recovery and
uncertainty surrounding next month’s U.S. presidential election.

Spot gold was up 0.2% to $1,895.41 per ounce by 0947
GMT, after shedding as much as 1.9% on Tuesday in reaction to
the dollar’s jump. U.S. gold futures gained 0.2% to
$1,899.20.

“We’re seeing some price recovery as lower prices generated
buying interest by investors since the general backdrop of gold
is still positive,” said Commerzbank analyst Carsten Fritsch.

“Low interest rates, expansion of monetary policy,
ballooning public debt, uncertainty regarding U.S. elections;
all these factors are supportive for gold prices,” he added.

Gold is considered a hedge against inflation and currency
debasement amid the unprecedented levels of global stimulus to
ease the economic blow from the pandemic.

But investors who trim risk assets also tend to shift into
the dollar and fading hopes for a new coronavirus relief package
in the United States and a pause in key COVID-19 vaccine trials
boosted the U.S. currency’s appeal, limiting gold’s advance.

The dollar hit a near one-week high against major
currencies. [USD/]

“In the near term, the dollar could continue to rise both
because of risk aversion because stimulus seems to be stuck and
also because of (company) earnings forward guidance,” said
DailyFx currency strategist Ilya Spivak.

Investors also kept an eye on the U.S. presidential
campaign, with polls showing Democrat rival Joe Biden leading
the race.

On the technical side, “bullion will need to break through
$1,920 to have the chance to

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