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PRECIOUS-Gold jumps 1% on uncertainty over recovery, U.S. elections

    * Gold's dip below $1,900 prompted short covering- trader
    * Fed's Sept. 15-16 policy meeting minutes due at 1800 GMT
    * Interactive graphic tracking global spread of coronavirus:
here

 (Recasts, adds comments, updates prices)
    By Eileen Soreng
    Oct 7 (Reuters) - Gold rose nearly 1% on Wednesday, bouncing
back from early losses and a near 2% drop in the previous
session, lifted by renewed fears over an economic recovery and
uncertainty around the U.S. presidential election.
    Spot gold        rose 1% to $1,895.46 per ounce by 0727 GMT.
    U.S. gold futures        were down 0.4% at $1,901.60.
    "Gold, (in the) longer term, is still bullish" and is likely
to continue the uptrend following the correction, said Brian
Lan, managing director at dealer GoldSilver Central in
Singapore, adding that the drop below $1,900 prompted some
short-covering.
    A low interest rate environment globally along with
uncertainties stoked by the upcoming U.S. elections bodes well
for gold, Lan added.
    U.S. president Donald Trump, who is being treated for
COVID-19, halted negotiations for an additional stimulus package
until after the Nov. 3 election.             
    The announcement bolstered the U.S. dollar and dragged down
gold, which is widely viewed as a hedge against inflation and
currency debasement.
    Trump later asked the Congress to extend $25 billion in new
payroll assistance to U.S. passenger airlines.              
    "Europe appears to be looking at things differently and
scooping up gold on what seems to be a material dip in prices,"
said Jeffrey Halley, a senior market analyst at OANDA.
    Investors are also awaiting minutes from U.S. Federal
Reserve's Sept. 15-16 policy meeting due later in the day.
            
    "Monetary policy is critical to where gold is going," said
DailyFx currency strategist Ilya Spivak, adding, the minutes
might reinforce the idea that the Fed is not looking to do more
stimulus in the immediate near term.
    The U.S. FDA released stringent guidelines for experimental
coronavirus vaccines, delaying the availability of vaccine until
after the presidential election.             
    Silver        climbed 2.8% to $23.74 per ounce, platinum
       was up 2.4% to $868.92, while palladium        rose 0.6%
to $2,354.11. 

 (Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi
Aich and Sherry Jacob-Phillips)
  
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