* Palladium to test $2,600/oz by mid-2021 -UBS
* Interactive graphic tracking global spread of coronavirus:
here
(Updates prices)
By Eileen Soreng
Oct 27 (Reuters) - Gold prices rose on Tuesday as a weaker
dollar and a fresh wave of coronavirus infections threatened to
further slow down a global economic recovery from the COVID-19
pandemic, bolstering bullion's safe-haven appeal.
Spot gold was 0.1% higher at $1,903.16 per ounce by
0801 GMT.
U.S. gold futures were steady at $1,906.50.
"The resurgence of COVID-19 is leading to a broader risk-off
sentiment in global markets and this is supportive of safe-haven
assets," said Harshal Barot, senior research consultant for
South Asia at Metals Focus.
"Investors are clearly not bearish on gold at the moment...
Long-term investors continue to hold gold amid the broader
uncertainty, be it the U.S. elections or the pandemic," Barot
added.
Many countries, including the United States, Russia and
France, are setting records for COVID-19 infections and forcing
some of them to impose new restrictions, risking derailing any
global economic recovery.
The dollar index dipped 0.1% against rivals,
pressured by strong economic data out of China and South Korea,
making the bullion cheaper for holders of other currencies.
Investors were, however, cautious ahead of the Nov. 3 U.S.
elections, while negotiations over a new relief aid showed no
signs of progress.
While U.S. House Speaker Nancy Pelosi expressed hope that an
agreement can be reached before the elections, White House
economic adviser Larry Kudlow told reporters on Monday that
talks have slowed.
Gold tends to benefit from widespread stimulus measures from
central banks because it is considered a hedge against inflation
and currency debasement.
Elsewhere, palladium gained 1% to $2,374.88 per
ounce, while platinum was up 0.9% at $877.34.
Palladium prices could test $2,600 by mid-2021 bolstered by
market tightness and stimulus measures, UBS analyst Giovanni
Staunovo said in a note.
Silver rose 0.5% to $24.44 per ounce.
(Reporting by Eileen Soreng in Bengaluru; Editing by Amy Caren
Daniel and Rashmi Aich)
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