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PRECIOUS-Gold set for biggest weekly drop in six as dollar advances

    * Gold down 4.6% so far this week, silver slips nearly 15% 
    * Dollar heads for biggest weekly gain in almost 6 months
    * Platinum, silver on track for largest weekly falls since
March
    * Interactive graphic tracking global spread of coronavirus:
here

 (Recasts, adds comments, updates prices)
    By Nakul Iyer
    Sept 25 (Reuters) - Gold prices fell on Friday and were on
track for their biggest weekly fall in six, hurt by a resilient
dollar, which benefited from increased risk aversion at
bullion's expense.  
    Spot gold        was down 0.4% to $1,860.16 per ounce at
1249 GMT, while U.S. gold futures        were down 0.91 % at
$1,859.80 per ounce.
    Bullion was also set to post its steepest weekly contraction
since mid August, falling 4.6%. 
    "We are seeing quite a significant shift as far as risk
appetite is concerned, while that typically favours gold, for
the vast majority of this year that has not been the case," said
OANDA analyst Craig Erlam.
    The risk-off move has favoured a major dollar rebound and
that's been a massive drag for gold, he said, adding "I don't
think its going to be much longer before we are talking about
$1,800."
    European shares were headed for their worst week since the
end of July as Britain and France notched up record coronavirus
cases.             
    The greenback was on course for its biggest week of gains
since early April, denting gold's appeal to holders of other
currencies.        
    News that the Democrats were working on a $2.2 trillion
package, after U.S. Fed officials urged more fiscal stimulus,
helped gold close higher for the first time this week on
Thursday.                                       
    There is still "fatigue" in the market as gold has already
priced in a lot of the favourable factors and there are a lot of
investors already in the market, so it is unlikely that there
will be many new ones, ABN Amro analyst Georgette Boele said.
    In other metals, silver        fell 1.9% to $22.78 per ounce
and platinum        slipped 1%, to $840.34. Both metals are on
track for their biggest weekly falls since mid March.
    Palladium        was down 1.4% at $2,195.88 per ounce. 

 (Reporting by Nakul Iyer in Bengaluru; editing by David Evans
and Mark Potter)
  
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