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PRECIOUS-Gold gains as concerns over U.S. stimulus talks ease

    * 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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