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PRECIOUS-Firm dollar, fading stimulus hopes put gold on course for weekly loss

    * Spot gold down 1.4% so far this week after two weeks of
gains
    * Break below $1,896/oz to prompt further dip in gold-
technicals
    * Fresh lockdowns in Europe stoke silver demand concerns-
analyst
    * Interactive graphic tracking global spread of coronavirus:
open 
    * tmsnrt.rs/3aIRuz7 in an external browser

 (Adds quotes, updates prices)
    By Eileen Soreng
    Oct 16 (Reuters) - Gold eased on Friday and looked set to
post its first weekly drop in three, as the dollar held firm
while additional U.S. fiscal stimulus appeared unlikely before
the presidential election.
    Spot gold        fell 0.2% to $1,903.24 per ounce by 0631
GMT, losing 1.4% so far this week. U.S. gold futures       
dipped 0.1% to $1,907.50.
    "There's some further upside for the dollar and that's been
a major headwind for gold, in addition to the ongoing (U.S.)
stimulus negotiations which have yielded no progress," said
Edward Moya, senior market analyst at OANDA.
    "Everyone is settling on the likelihood that we're not going
to have a deal before the election."
    U.S. President Donald Trump said on Thursday he was willing
to raise his offer of $1.8 trillion for a relief deal with
Democrats in Congress, but the idea was shot down by Senate
Majority Leader Mitch McConnell.             
    The dollar       , also considered a safe haven, was headed
for its first weekly gain in three, supported by surging
coronavirus cases globally and fading bets for a U.S. stimulus
deal.                               
    The COVID-19 pandemic has prompted unprecedented money
printing and low interest rates globally, putting gold on track
for its best year in a decade given its appeal as a hedge
against inflation and currency debasement.
    Gold may retest support at $1,896 per ounce, a break below
which could cause a fall to $1,877, according to Reuters
technical analyst Wang Tao.             
    Elsewhere, silver        fell 0.8% to $24.11 per ounce, and
was down 3.9% for the week.
    "Silver prices fell back on concern that industrial metals
demand in Europe will take a hit after some of the region's
biggest cities imposed fresh lockdown measures," Avtar Sandu,
senior commodities manager at Phillip Futures, said in a note.
    Platinum        fell 0.4% to $860.22 and palladium       
eased 0.1% to $2,350.45.

 (Reporting by Eileen Soreng in Bengaluru; Editing by Uttaresh.V
and Subhranshu Sahu)
  
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