PRECIOUS-Gold hits one-week peak as U.S. stimulus hopes dent dollar

* Dollar slips to one-week low
* Stimulus hopes lift risk sentiment
* Interactive graphic tracking global spread of coronavirus:
open
* https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Brijesh Patel
Oct 21 (Reuters) - Gold prices rose to a one-week high on
Wednesday as the dollar weakened on renewed hopes for a new U.S.
stimulus package ahead of the Nov. 3 election.
Spot gold XAU= was up 0.6% at $1,917.57 per ounce by 1212
GMT, after touching its highest since Oct. 13. U.S. gold futures
GCv1 rose 0.3% to $1,920.90 per ounce.
"There seems to be increasing hope that a stimulus deal can
get through Congress before election day...This is broadly
keeping risk appetite supported in the U.S., dragging on the
dollar and lifting gold prices," OANDA analyst Craig Erlam said.
The dollar index .DXY fell to a one-month low against its
rivals, making gold less expensive for holders of other
currencies. USD/
The White House and Democrats in the U.S. Congress moved
closer to agreement on Tuesday as President Donald Trump said he
was willing to accept a large aid bill despite opposition from
his Republican Party. The comments from Trump also lifted equities. MKTS/GLOB
Gold, considered a hedge against inflation, currency
debasement and uncertainty, has gained more than 26% this year,
driven mainly by unprecedented levels of global stimulus to
cushion economies from the coronavirus-induced slump.
"There however appears no definite clarity on the continued
shifting of positions on the stimulus relief bill which
shorter-term traders can price into the precious metals market,"
Phillip Futures analysts said in a note.
"Long term investors have shifted focus on what the November
election outcome means for stimulus later, with a Democrat
victory seen boosting gold's sentiment with a very large
stimulus package."
Elsewhere, silver XAG= rose 1.3% to $24.97 per ounce,
platinum XPT= gained 0.9% to $878.93 and palladium XPD=
eased 0.2% to $2,395.22.