* Global equities gain for second session
* Investors eye Fed Chair's address at Jackson Hole
* Interactive graphic tracking global spread of coronavirus:open in an external browser (Updates prices)By Diptendu LahiriAug 24 (Reuters) - Gold prices rose on Monday as the dollardipped, making bullion cheaper for holders of other currencies,but hopes for progress in the treatment of COVID-19 limitedgains in the safe-haven metal.
Spot gold was up 0.4% at $1,946.89 an ounce by 1240GMT, having jumped 1% to $1,961.40 an ounce after early losses.U.S. gold futures gained 0.8% to $1,961.80."The dollar is softer today and, if we look at the largerpicture, the world economy is still trying to recover from theeffects of coronavirus," said Saxo Bank analyst Ole Hansen."Along with that, the risk of inflation continues to attractinvestors to gold."The dollar index was down 0.4% after climbing to amore than one-week high in the previous session.
Investors are awaiting U.S. Federal Reserve Chairman JeromePowell's address to the bank's annual symposium in Jackson Hole,Wyoming, on Thursday for signs of how aggressively it will seekto handle the long-term recovery from the pandemic. "The U.S. central bank should reiterate its pledge forultra-low rates, providing some support for gold," Avtar Sandu,a senior commodities manager at Phillip Futures, said in a note."(It) may be expected to signal greater tolerance forabove-target inflation, keeping real interest rates low."Lower U.S. interest rates cut the opportunity cost ofholding non-yielding bullion.Central banks worldwide have rolled out massive stimulusmeasures to alleviate the economic damage caused by the COVID-19pandemic, but that has also increased the probability of risinginflation.Restricting gold's advance, equity markets gained for asecond straight session after the U.S. Food & DrugAdministration authorised the use of blood plasma from patientswho have recovered from COVID-19 as a treatment for the disease.Silver rose 0.8% to $26.90 an ounce, platinum was up 0.6% at $924.29 and palladium eased 0.1% to$2,180.18. (Reporting by Diptendu Lahiri and Brijesh Patel in BengaluruEditing by Jan Harvey and David Goodman)
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