Gold falls as dollar rebounds, investors eye U.S. stimulus
* "Blue wave" likely to lift gold prices - analyst
* Interactive graphic tracking global spread of coronavirus: Link (Updates prices)
By Eileen Soreng
Oct 13 (Reuters) - Gold edged lower on Tuesday as the dollar rebounded, although the metal is likely to be supported going forward due to an eventual U.S. stimulus package that will boost its appeal as a hedge against the resultant inflation.
Spot gold XAU= inched 0.1% lower to $1,919.76 per ounce by 0813 GMT.
U.S. gold futures GCv1 were down 0.3% at $1,922.70 per ounce.
"In the absence of further dollar downside, gold bulls are feeling a little jittery at the moment," said Howie Lee, an economist at OCBC Bank.
"Over the near or longer term, there is a boost for gold prices if it is (stimulus) passed. But because we're stuck in a deadlock now and it increasingly looks like there'll be none before the elections, gold is struggling a bit here."
The dollar index .DXY was up 0.2% against rivals.
A White House spokeswoman said on Monday Senate Republicans will go along with what President Donald Trump wants in a coronavirus relief legislation.
Trump on Sunday called on Congress to pass a stripped-down bill.
Investors also kept close tabs on the upcoming U.S. elections with polls showing Democrat rival Joe Biden leading the race.
"A so-called 'blue wave' would likely pave the way for a larger fiscal support package, which in turn could exert more upward pressure on bullion," said FXTM market analyst Han Tan.
"A protracted delay to the U.S. elections outcome could also spur risk aversion in the interim, which could buffer the supportive environment for gold," Tan said, adding, however, that the risk of a higher dollar and yields remained a headwind.
Meanwhile, adding to the uncertainty over the economic recovery was a recent spike in COVID-19 cases across major economies, including the U.S. and the UK, with worldwide infections crossing 37.74 million.
Silver XAG= fell 0.8% to $24.90 per ounce, platinum XPT= dipped 0.3% to $870.75, while palladium XPD= rose 0.6% to $2,416.51.
Reporting by Eileen Soreng and Nakul Iyer in Bengaluru; Editing by Rashmi Aich and Uttaresh.V
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