PRECIOUS-Gold falls to one-month low as dollar extends rally

* No deal in sight on coronavirus relief -White House
adviser
* Dollar hits one-month peak
* Silver slips to one-month low
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

(Updates prices)
By Brijesh Patel
Oct 29 (Reuters) - Gold prices dropped to one-month lows on
Thursday, hurt by a stronger dollar and lack of clarity on a
U.S. stimulus agreement, while concerns over a spike in COVID-19
cases and uncertainty ahead of U.S. elections limited losses.
Spot gold XAU= was down 0.5% at $1,867.40 per ounce by
1:39 p.m. EDT (1739 GMT), having earlier slipped to its lowest
since Sept. 28 at $1,858.92.
U.S. gold futures GCcv1 settled down 0.6% to $1,868.
"The downturn we are seeing in gold prices is because there
is a short-term concern about timing of the stimulus getting
approved," said Jeffrey Sica, founder of Circle Squared
Alternative Investments, adding "a strengthening U.S. dollar is
impacting gold."
President Donald Trump's chief economic adviser said on
Thursday that any deal on coronavirus relief legislation would
have to wait for now. Denting gold's appeal, the dollar index .DXY rose 0.7% to
a one-month high, making gold more expensive for holders of
other currencies. USD/
"Gold is now at levels where people could accumulate
considering the chaos around the election, concerns about
economic recovery and the coronavirus situation. The trend for
gold is still bullish," Sica said.
Gold, often used as a safe store of value during times of
political and financial uncertainty, has risen 24% this year
amid unprecedented global levels of stimulus during the
pandemic.
Rapidly rising COVID-19 infection rates in Europe forced
France and Germany to order their countries back into lockdown.
Meanwhile, data showed the U.S. economy grew at an
unrivalled pace in the third quarter and weekly unemployment
claims fell more than expected in the latest week. Ahead of the Nov. 3 election, Democratic challenger Joe
Biden leads Trump nationally, but the competition is tighter in
swing states. Elsewhere, silver XAG= dipped 0.5% to $23.30 per ounce
after earlier slipping to a near one-month low.
Platinum XPT= fell 2.2% to $848.58 and palladium XPD=
slipped 1.8% to $2,197.90.