PRECIOUS-Gold's record breaking rally sputters on dollar bounce-back

* Silver slips, but up over 15% so far this week
* Gold set for ninth straight weekly rise
* Dollar rebounds from two-year low
* Washington remains deadlocked over aid bill
* Interactive graphic tracking global spread of coronavirus:
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(Updates prices)
By Sumita Layek
Aug 7 (Reuters) - Gold slumped over 2% on Friday, snapping
its record-breaking rally, after a decent U.S. jobs report
boosted the dollar, but a worsening pandemic kept prices on
course for their longest streak of weekly gains in about a
decade.
Spot gold XAU= fell 1.4% to $2,033.89 per ounce by 2:46
p.m. EDT (1846 GMT), after hitting a record high of $2,072.50.
It has added 3% so far this week for what would be its ninth
straight weekly gain.
U.S. gold futures GCv1 settled down 2% at $2,028.
"The dollar rebounded quite strongly after the jobs report.
That clearly caused a sell-off across the board in the metals
sector," said David Meger, director of metals trading at High
Ridge Futures.
"The thought process would be that with the slightly better
than expected jobs number, the economy is slowly regaining its
footing and, hypothetically, we would then see a lesser need for
stimulus."
The dollar .DXY rebounded from two-year lows after data
showed U.S. nonfarm payrolls increased 1.763 million in July
against a record rise of 4.791 million in June and on renewed
U.S.-China tensions. USD/ Further weighing on gold was an impasse in the new U.S.
coronavirus aid bill.
"Once they agree on a stimulus it'll be bearish for the
dollar. The global economy is still very wobbly and as a result
we're going to get a lot more easy money, so all that is
tailwind for gold," said Edward Meir, analyst at ED&F Man
Capital Markets.
Gold can still end the year at $2,200-$2,300, he added.
Bullion has risen 34% this year amid surging COVID-19 cases,
which have battered global economies and prompted unprecedented
stimulus measures. Elsewhere, silver XAG= slid 3% to $28.07 per ounce, having
earlier hit its highest since February 2013 at $29.84. It has
gained 15.5% so far this week.
Platinum XPT= dipped 4.1% to $957.36, while palladium
XPD= declined 2.9% to $2,156.97.