PRECIOUS-Gold jumps 1% as bets grow on U.S. relief deal, dollar retreats

* Dollar slides to near two-month low
* Gold may average less than $2,000/oz next year - poll
* Platinum, palladium to gain on auto sector recovery - poll
* Interactive graphic tracking global spread of coronavirus:
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https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Asha Sistla
Oct 21 (Reuters) - Gold rose 1% to its highest in over a
week on Wednesday as investor optimism that a U.S. coronavirus
aid package will be announced before the Nov. 3 presidential
elections pressured the dollar and bolstered bullion's appeal as
an inflation hedge.
Spot gold XAU= jumped 1% to $1,924.73 per ounce by 1:46
p.m. EDT (1746 GMT), after touching its highest since Oct. 12 at
$1,931.01 in earlier trade. U.S. gold futures GCv1 settled up
0.7% at $1,929.5.
"Nancy Pelosi had a Tuesday deadline. Well, now it's been
pushed down to Friday. Knowing that, people think a deal might
get done in the near future, so they're starting to accumulate
gold," said Michael Matousek, head trader at U.S. Global
Investors.
White House Chief of Staff Mark Meadows said the biggest
sticking point remains funding for state and local governments,
but added that progress has been made toward a coronavirus
relief deal. The increased bets on an eventual breakthrough pushed the
dollar .DXY to its lowest in nearly two months, making gold
less expensive for holders of other currencies. USD/
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.
"What's going to create that demand to propel gold higher?
It's going to be the continued stimulus, continued negative
interest rates, people worried about the COVID infection spiking
because gold is thought of as a safe haven," added U.S. Global
Investors' Matousek.
Looking ahead, a Reuters poll predicted that while gold may
average less than $2,000 next year as a record rally slows,
prices could still touch new highs. PREC/POLL
Elsewhere, silver XAG= rose 1.9% to $25.10 per ounce,
platinum XPT= gained 2% to $888.12 and palladium XPD= inched
up by 0.1% to $2,400.22.
Platinum and palladium could gain on a tentative recovery in
the auto sector, the survey showed.