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PRECIOUS-Gold drops near two-week low as dollar rebounds

    * European shares drop to 2-week low 
    * Silver slips nearly 2%, palladium down 1%
    * Interactive graphic tracking global spread of coronavirus:
here

 (Recasts, adds comments, updates prices)
    By Nakul Iyer
    Sept 21 (Reuters) - Gold fell to its lowest in nearly two
weeks on Monday hurt by a stronger dollar, while investors
looked to U.S. Federal Reserve policymakers' speeches this week
for clues on further stimulus measures to revive the
coronavirus-battered economy.  
    Spot gold        dropped 1% to $1,930.36 per ounce by 0946
GMT, having declined to its lowest since Sept. 9 at $1,928.14.  
    U.S. gold futures        fell 1.3% to $1,936.90 per ounce.
    "Tug-of-war between the dollar and gold is expected to play
out until there is a major shift in global risk sentiment, or if
investors can get a better grasp on the U.S. monetary policy
outlook," said FXTM market analyst Han Tan.
    The dollar index        rose 0.4% against its rivals, making
gold more expensive for holders of other currencies.       
    Investors now await speeches by Fed committee members,
including Chairman Jerome Powell, who will appear before
Congressional committees later this week.             
    "They (central banks) are in a wait and see mode and it has
tempered the expectations of gold bulls," said Michael Hewson,
chief market analyst at CMC Markets UK.
    It is unlikely that we'll get any clarity on how the Fed is
going to arrive at its inflation targets and on monetary policy
until at least the end of the U.S. election, he added.
    Gold's decline on Monday came despite European shares
dropping to a 2-week low as surging COVID-19 cases in Europe
prompted renewed lockdown measures in some countries and clouded
the recovery outlook.      
    "The U.S. elections in early November certainly pose a major
event risk on gold's trajectory. Should risk aversion creep up
over the coming six weeks, that may translate into upward
pressure for bullion prices in the interim," FXTM's Tan noted.
    Elsewhere, silver        fell nearly 2% to $26.24 per ounce,
platinum        slipped 0.9% to $919.68 and palladium        was
down 1.4% at $2,324.06. 

 (Reporting by Nakul Iyer in Bengaluru; editing by Emelia
Sithole-Matarise)
  
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