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PRECIOUS-Gold falls as dollar rebounds, investors eye U.S. stimulus

    * "Blue wave" likely to lift gold prices - analyst
    * Interactive graphic tracking global spread of coronavirus:
here

 (Updates prices)
    By Eileen Soreng
    Oct 13 (Reuters) - Gold edged lower on Tuesday as the dollar
rebounded, although the metal is likely to be supported going
forward due to an eventual U.S. stimulus package that will boost
its appeal as a hedge against the resultant inflation.
    Spot gold        inched 0.1% lower to $1,919.76 per ounce by
0813 GMT.        
    U.S. gold futures        were down 0.3% at $1,922.70 per
ounce.
    "In the absence of further dollar downside, gold bulls are
feeling a little jittery at the moment," said Howie Lee, an
economist at OCBC Bank. 
    "Over the near or longer term, there is a boost for gold
prices if it is (stimulus) passed. But because we're stuck in a
deadlock now and it increasingly looks like there'll be none
before the elections, gold is struggling a bit here."
    The dollar index        was up 0.2% against rivals.        
    A White House spokeswoman said on Monday Senate Republicans
will go along with what President Donald Trump wants in a
coronavirus relief legislation.             
    Trump on Sunday called on Congress to pass a stripped-down
bill.             
    Investors also kept close tabs on the upcoming U.S.
elections with polls showing Democrat rival Joe Biden leading
the race.             
    "A so-called 'blue wave' would likely pave the way for a
larger fiscal support package, which in turn could exert more
upward pressure on bullion," said FXTM market analyst Han Tan.
    "A protracted delay to the U.S. elections outcome could also
spur risk aversion in the interim, which could buffer the
supportive environment for gold," Tan said, adding, however,
that the risk of a higher dollar and yields remained a headwind.
    Meanwhile, adding to the uncertainty over the economic
recovery was a recent spike in COVID-19 cases across major
economies, including the U.S. and the UK, with worldwide
infections crossing 37.74 million.                          
    Silver        fell 0.8% to $24.90 per ounce, platinum       
dipped 0.3% to $870.75, while palladium        rose 0.6% to
$2,416.51.

 (Reporting by Eileen Soreng and Nakul Iyer in Bengaluru;
Editing by Rashmi Aich and Uttaresh.V)
  
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