PRECIOUS-Gold gains on U.S. stimulus deal optimism, weaker dollar

* Spot gold hits one-week peak at $1,920.27/oz
* Dollar hits one-month trough
* Interactive graphic tracking global spread of coronavirus:
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* https://tmsnrt.rs/3aIRuz7 in an external browser

(Adds comments, updates prices)
By Eileen Soreng
Oct 21 (Reuters) - Gold prices rose on Wednesday as optimism
that U.S. lawmakers could reach agreement on a pre-election
coronavirus relief package pressured the dollar and bolstered
the precious metal's appeal as an inflation hedge.
Spot gold XAU= gained 0.6% to $1,917.76 per ounce by 0323
GMT, having earlier hit a one-week high. U.S. gold futures
GCv1 were up 0.4% at $1,922.80.
The White House and Democrats in the U.S. Congress moved
closer to agreement on a fresh stimulus package on Tuesday as
President Donald Trump said he was willing to accept a large aid
bill despite opposition from his Republican Party. Talks will continue on Wednesday, an aide to top U.S.
Democrat Nancy Pelosi said.
The news lifted risk appetite and sent the dollar index
.DXY to a one-month low against a basket of major currencies.
USD/
"The falling U.S. dollar is the main contributor to gold's
rise," said Margaret Yang, a strategist with DailyFx, which
covers currency, commodity and index trading.
The pandemic has prompted unprecedented money printing and
low-interest rates globally, putting gold on track for its best
year in a decade given its appeal as a hedge against inflation
and currency debasement.
But the precious metal has been rangebound in the past few
sessions, hovering near the psychologically important level of
$1,900, as investors await developments on the U.S. stimulus
deal.
The market needs more certainty on the U.S. stimulus front
before taking a position, IG Markets analyst Kyle Rodda said.
On the physical front, customs data showed Switzerland's
gold exports to China and India dwindled in September, with the
country instead importing record volumes of bullion from Hong
Kong and sending the metal to Britain. Elsewhere, silver XAG= rose 1.4% to $24.98 per ounce,
platinum XPT= was up 0.8% at $877.91. Palladium XPD= was
0.4% higher at $2,407.95.