* Fed's Sept. 15-16 policy meeting minutes due at 1800 GMT * Interactive graphic tracking global spread of coronavirus: here (Updates prices) By Sumita Layek Oct 7 (Reuters) - Gold rebounded on Wednesday as worries about a halt in U.S. coronavirus stimulus talks faded, bolstering bullion's appeal as a hedge against inflation and prompting investors to cover short positions after a near 2% decline in the last session. Spot gold rose 0.5% to $1,886.16 per ounce at 1142 GMT. U.S. gold futures fell 1% to $1,889.60. Gold fell nearly 2% on Tuesday after U.S. President Donald Trump halted negotiations for an additional stimulus package until after the Nov. 3 election. However, he later suggested new payroll assistance to U.S. passenger airlines. "There has been some short covering which has revived the market off the lows. Gold is finding its way back to the $1,900s, it's less a case of whether there is going to be a stimulus package and more of the timing," said independent analyst Ross Norman. "The Democratic leader has a significant lead (in the election polls) and the markets are turning to what would that entail, certainly the suggestion is the Democrats, if they were to be successful, will be pushing through a significantly larger stimulus package," Norman said. Gold, seen as a hedge against inflation and currency debasement, has risen 24% this year, supported by massive government and central bank stimulus worldwide. "Overall, it's the reaction in the bond markets, the yields are lower, the U.S. dollar is a bit weaker against the euro," said Quantitative Commodity Research analyst Peter Fertig. Fertig added the uncertainty from the upcoming U.S. elections would keep gold supported. Investors now await minutes from U.S. Federal Reserve's Sept. 15-16 policy meeting due later in the day. They also took stock of stringent guidelines for experimental coronavirus vaccines released by the U.S. FDA, delaying the availability of vaccine until after the election. Elsewhere, silver climbed 1.8% to $23.50 per ounce, platinum gained 1.3% to $859.44, while palladium rose 0.5% to $2,352.74. (Reporting by Sumita Layek in Bengaluru; Editing by Mark Potter and Louise Heavens)
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