PRECIOUS-Gold rises on dollar dip, hopes for U.S. relief package

* Dollar slips to near one-week low
* Silver could rally to $40/oz over next 12 months -Citi
* Pelosi optimistic of U.S. fiscal aid before election
* Interactive graphic tracking global spread of coronavirus:
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https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Asha Sistla
Oct 19 (Reuters) - Gold rose about 1% on Monday as the
dollar retreated and expectations for a U.S. stimulus deal ahead
of the Nov. 3 presidential elections bolstered bullion's appeal
as an inflation hedge.
Spot gold XAU= rose 0.4% to $1,906.36 per ounce by 1:49
p.m. EDT (1749 GMT). U.S. gold futures GCv1 settled up 0.3% to
$1,911.70.
Gold is strengthening on the dollar's downtrend and "the
belief that some kind of stimulus package is going to come
through in the next 48 hours," said Phillip Streible, chief
market strategist at Blue Line Futures in Chicago.
"People believe that we are going to go into an inflationary
period into the next quarter. So they are starting up front on
that."
The dollar .DXY slipped 0.4% versus rivals, making gold
less expensive for holders of other currencies. USD/
U.S. House Speaker Nancy Pelosi said on Sunday that
differences remained with the Trump administration on a
wide-ranging relief package but that she was optimistic
legislation could be pushed through before election day.

Gold has gained over 25% so far this year as investors
sought refuge from a worsening coronavirus pandemic and risks of
inflation and currency debasement as global central banks
slashed interest rates and pumped out unprecedented stimulus.
Further underpinning safe-haven demand for bullion were
concerns surrounding fresh coronavirus-led restrictions in
Europe and elsewhere as worldwide infections exceeded 40
million, as well as uncertainty over the U.S. elections.
Silver XAG= climbed 1.3% to $24.48, having hit a near
one-week peak.
Citi said in a note it expected silver to rally to $40 over
the next 12 months, on sustained investor demand and a recovery
in industrial consumption in 2021. Platinum XPT= fell 0.1% to $858.93 per ounce, while
palladium XPD= rose 0.6% to $2,345.80.