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PRECIOUS-Gold hits 6-week trough as dollar grinds higher

    * Silver falls as much as 5.6% to a two-month low
    * Platinum hits 2 month-low
    * Stimulus pessimism has curbed inflation expectations-
analyst
    * Interactive graphic tracking global spread of coronavirus:
here

 (Recasts, adds comments, updates prices)
    By Nakul Iyer
    Sept 23 (Reuters) - Gold slid more than 1% to a six-week low
on Wednesday, as the dollar extended its rally, while a lack of
additional stimulus to aid the recovery of the
coronavirus-battered global economy further weighed on
sentiment.    
    Spot gold        was down 0.6% at $1,887.35 per ounce at
0913 GMT after it dipped 1.4% to touch its lowest since Aug. 12
at $1,873.01 earlier in the session. U.S. gold futures       
were down 1.2% at $1,885.60 per ounce. 
    "As long as we see strength in the dollar, then undoubtedly
we are also going to see gold struggle," said Saxo Bank analyst
Ole Hansen, adding that the break below $1,900 sparked some
nervousness and short-selling in the market. 
    Gold has turned "passive", having priced all of the
favourable factors already, and now needs inflation to emerge
and a weaker dollar to attract renewed demand, he added.    
    Positive U.S. economic data and concerns over surging
coronavirus infections in Europe and Britain pushed the dollar
index        to an eight-week high, dimming the appeal of
bullion as a dollar alternative.  
    Comments from Chicago U.S. Federal Reserve President Charles
Evans, who said interest rates could be raised before inflation
averages 2%, also weighed on sentiment by weakening inflation
expectations and lifting U.S. real yields.
                        
    Non-yielding gold is often seen as a hedge against inflation
and currency weakening.             
     "We are also seeing a slight pessimism about U.S. fiscal
stimulus and that has probably curbed inflation expectations
just a little bit," said IG Markets analyst Kyle Rodda.
    The market is still expecting policy changes that could
bolster gold over time but that is a longer-term view, he added.
    Silver        fell 3.3% to $23.62 per ounce, having hit a
nearly two-month low of $23.04 earlier in the session. 
    Platinum        fell 0.6% to $861.39 per ounce, earlier
touching its lowest since July 21 at $845.50 and palladium
       rose 0.9% to $2,240.60. 
    

 (Reporting by Nakul Iyer and Eileen Soreng in Bengaluru
Editing by Tomasz Janowski)
  
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