PRECIOUS-Gold retreats more than 1% to three-week low as dollar rallies

* European stocks hit late-May lows
* Dollar climbs to highest in over a week
* Silver, palladium down more than 3%
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

(Recasts, adds comments, updates prices)
By Brijesh Patel
Oct 28 (Reuters) - Gold slid more than 1% to a three-week
low on Wednesday as investors opted for the dollar as a
preferred refuge from concerns about rising coronavirus cases in
Europe and uncertainty going into next week's U.S. presidential
election.
Spot gold XAU= slipped 1.3% to $1,882.41 per ounce by 1225
GMT, after hitting its lowest since Oct. 7 at $1,880.99. U.S.
gold futures GCcv1 fell 1.6% to $1,882.20.
"We have increased uncertainty related to the pandemic and
the prospect of renewed lockdowns in Europe, so we have stock
markets down and the dollar in response is receiving the bids,"
said Saxo Bank analyst Ole Hansen. That is hurting gold, he
said.
"Gold's break below $1,885 could trigger additional long
liquidation and send the market further (down)."
The rival safe-haven dollar jumped 0.7% to a more than
one-week high .DXY , with the prospect of fresh lockdowns
weighing heavily on the euro and European stock markets. USD/
.EU
The United States, Russia, France and other countries have
registered record numbers of coronavirus infections in recent
days. "With gold investors not banking on pre-election stimulus -
and it may even get delayed if the U.S. elections results are
contested - EURUSD levels might be a crucial bellwether for
gold," said Stephen Innes, chief global market strategist at
Axi, in a note. EUR=EBS
President Donald Trump on Tuesday said that an economic
relief deal would likely come after the Nov. 3 election despite
a rise in infections and a stalling labour market recovery.
Gold, considered a hedge against inflation and currency
debasement amid unprecedented global levels of stimulus, is
still up about 25% so far this year.
Focus was on the U.S. elections, with Democratic challenger
Joe Biden leading Trump in nationwide polls. Elsewhere, silver XAG= slipped 3.4 % to $23.72 per ounce,
platinum XPT= fell 1.9% to $861.74 and palladium XPD=
dropped 3.2% to $2,257.84.