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PRECIOUS-Gold eases off three-week high as dollar steadies

    * Gold hits highest since Sept. 21 at $1,932.96/oz 
    * Interactive graphic tracking global spread of coronavirus:
here

 (Updates prices)
    By Eileen Soreng
    Oct 12 (Reuters) - Gold retreated slightly from a three-week
high, as the dollar recouped some of its losses after a new U.S.
coronavirus aid package ran into resistance.
    Spot gold        fell 0.3% to $1,923.81 per ounce by 0737
GMT, after hitting its highest level since Sept. 21 at $1,932.96
earlier in the session. U.S. gold futures        were up 0.2% at
$1,930.10.
    "The dollar index has rebounded slightly, weighing on the
precious metal," said Margaret Yang, a strategist with DailyFx,
which covers currency, commodity and index trading.
    But, "the technical trend has turned bullish in the near
term and very soon it may test the key resistance level of
$1,942," she added.
    The dollar index        steadied, marginally recovering from
a three-week low against rivals, after negotiations on the U.S.
stimulus package ran into resistance and as the yuan dropped
after China's central bank took a measure seen as aimed at
curbing its strength.                    
    The Trump administration on Sunday called on Congress to
pass a stripped-down coronavirus relief bill using leftover
funds from an expired small business loan programme.
            
    But while the $1.8 trillion economic stimulus proposal drew
criticism from congressional Democrats and Republicans,
investors seem optimistic that spending will resume at some
point.             
    "There is going to be a stimulus coming really quickly after
the election... The market will look through the fact that we
don't have stimulus now but that it is coming and that will be
supportive for gold," Stephen Innes, chief global market
strategist at Axi. 
    Gold, considered a hedge against inflation and currency
debasement, has gained over 26% so far this year, boosted by
unprecedented stimulus measures unveiled globally to cushion the
economic fallout from the COVID-19 pandemic.
    Silver        gained 0.2% to $25.16 per ounce and palladium
       rose 0.1% to $2,440.61, while platinum        fell 0.2%
to $884.21. 

 (Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi
Aich and Subhranshu Sahu)
  
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