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PRECIOUS-Gold firms on weaker dollar; buoyant equities cap gains

    * Dollar dips by 0.1%
    * Global equities near highest in more than two weeks 
    * Interactive graphic tracking global spread of coronavirus:
here

 (Updates prices and adds comment)
    By Sumita Layek
    Oct 6 (Reuters) - Gold edged higher on Tuesday as the dollar
weakened, though gains were capped by improved appetite for
riskier assets after U.S. President Donald Trump left the
hospital where he was treated for COVID-19.
    Spot gold        rose 0.3% to $1,917.86 an ounce by 1205
GMT, having hit its highest in almost two weeks on Monday at
$1,918.36. U.S. gold futures         gained 0.2% to $1,923.90.
    "The moderating dollar is eroding some of the downward
pressure on spot gold," said FXTM market analyst Han Tan.
    He added that while news of Trump's improving condition had
initially encouraged risk-on sentiment, it could be short-lived,
with questions continuing to swirl about the true state of the
president's health.             
    The dollar        fell 0.1% against a basket of major
currencies, making gold cheaper for holders of other currencies.
      
    Global stock markets neared a more than two-week high after
Trump returned to the White House, and on expectations of new
coronavirus economic relief measures in the United States.
                       
    "Should the next round of U.S. fiscal stimulus be approved,
that may lend upward pressure to the U.S. inflation outlook
while encouraging gold bulls to return to the fore," FXTM's Tan
said.
    Gold, seen as a hedge against inflation and currency
debasement, has risen 26% this year, supported by massive
government and central bank stimulus worldwide.
    "The main risk is the upcoming U.S. elections. If the
election is close and Joe Biden has the lead and Trump does not
concede, then we will enter a prolonged period of uncertainty,"
said Commerzbank analyst Carsten Fritsch.
    "And that will be dovish news for the dollar and bullish
news for gold."
    Elsewhere, silver        rose 0.3% to $24.42 an ounce,
palladium        fell 0.3% to $2,355.55 and platinum        shed
1.1% to $886.76.

 (Reporting by Sumita Layek in Bengaluru
Editing by Kirsten Donovan and David Goodman)
  
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