* Dollar falls to a more than one-week low * Gold hits highest level in more than a week * U.S. manufacturing activity unexpectedly slowed in Sept * Interactive graphic tracking global spread of coronavirus: here (Updates prices) By Arundhati Sarkar Oct 1 (Reuters) - Gold jumped 1% on Thursday to firm above the key $1,900 level on renewed hopes for U.S. stimulus that could help ease the economic pain from the coronavirus, while a weaker dollar also boosted bullion's appeal. Spot gold rose 1.2% to $1,907.46 per ounce by 2 p.m. EDT (1800 GMT), after hitting its highest level since Sept. 22 at $1,911.66. U.S. gold futures settled up 1.1% at $1,916.30 per ounce. Investors were eyeing talks between U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin to reach a deal on the long-awaited COVID-19 relief bill. "If there's a deal, chances are stimulus will reignite the idea that inflation will move towards the Federal Reserve's target," which along with the interest rate suppression policy by the Fed is a very good catalyst for gold, said Bart Melek, head of commodity strategies at TD Securities. He said the breakthrough of the psychological barrier of the $1,900 level could drive the market technically a little higher. The dollar fell to a more than one-week low versus rivals, making gold cheaper for holders of other currencies. Meanwhile, U.S. manufacturing activity unexpectedly slowed in September as new orders retreated, while U.S. weekly jobless claims drifted lower but remained at recession levels, further bolstering gold's safe-haven appeal. "The main driver (for gold) is investment money and reaction to economic headlines, geopolitical headlines and the dollar," said David Govett, chief executive of Govett Precious Metals and a former trader. "A lot of those things are factored in, but it's going to get worse before it gets better, and because of that gold is going to benefit and move back to $2,000." Elsewhere, silver gained 3% to $23.92 per ounce. Platinum was up 1.1% at $897.71 per ounce, while palladium rose 1% to $2,317.62. (Reporting by Arundhati Sarkar and Nakul Iyer in Bengaluru; editing by Jonathan Oatis and Leslie Adler)
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