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PRECIOUS-Gold gains as stimulus uncertainty eases; market awaits Fed minutes

    * Fed's Sept. 15-16 policy meeting minutes due at 1800 GMT
    * Potential of no election result in Nov will help gold
-analyst
    * Interactive graphic tracking global spread of coronavirus:
here

 (Updates prices)
    By Arundhati Sarkar
    Oct 7 (Reuters) - Gold rose on Wednesday after concerns over
further U.S. stimulus to support the virus-hit economy eased and
the focus shifted to upcoming minutes from the U.S. Federal
Reserve's last meeting for clues on the outlook of monetary
policy.
    Spot gold        rose 0.5% to $1,887.05 per ounce by 1:45 pm
EDT (1745 GMT). U.S. gold futures        settled down 0.9% at
$1,890.80.
     U.S. President Donald Trump on Tuesday announced a halt in
additional stimulus negotiations until after the Nov. 3
presidential election, prompting gold prices to drop nearly 2%.
He later suggested new payroll assistance to U.S. passenger
airlines.             
    "President Trump's retracement from 'no stimulus
negotiation' to 'unilateral relief measures' has helped support
gold prices despite the U.S. dollar only weakening slightly,"
said Jeff Klearman, portfolio manager at GraniteShares.
    "Coronavirus-related demand destruction concerns still
abound, meaning sooner or later, a fiscal stimulus package will
likely be passed and the Fed will continue its unprecedented
accommodative monetary policy," Klearman said.
    Investors now await minutes from Fed's Sept. 15-16 policy
meeting at 1800 GMT. Fed Chair Jerome Powell on Tuesday called
for more help for businesses and households to keep a nascent
economic recovery from faltering.             
    "There is an anticipation about the level of inflation as a
result of stimulus ... and that could be hedged by gold," said
Jeffrey Sica, president and chief investment officer of Sica
Wealth Management.
    "There will be a great potential of not having an election
result in November, which will help gold prices as a flight to
safety," he added.
    Gold retains value even at times of financial or political
uncertainty. It is also used as a hedge against inflation.
    Silver        climbed 3% to $23.78 per ounce, platinum
       gained 1.8% to $863.18, and palladium        rose 0.8% to
$2,358.82.

 (Reporting by Arundhati Sarkar in Bengaluru; Editing by Richard
Chang)
  
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