PRECIOUS-Gold climbs as weaker dollar bolsters appeal

* Gold in consolidation mode, long-term outlook positive
-analyst
* Silver up over 1%, recovering from two-week low hit on
Wednesday
* Fed officials warn of muted U.S. growth until virus is
contained
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(Recasts, updates prices)
By Brijesh Patel
Aug 13 (Reuters) - Gold rose on Thursday on a softer dollar,
consolidating further above the key $1,900 level after a
dramatic retreat earlier this week from an all-time high.
Spot gold XAU= was up 0.6% at $1,929.13 per ounce by 0708
GMT, a day after slipping below the $1,900 level in choppy
trade. Prices hit a record high of $2,072.50 on Friday. U.S.
gold futures GCcv1 eased 0.5% to $1,938.90.
The dollar .DXY slipped 0.2% against rivals, making gold
cheaper for holders of other currencies. USD/
"The fall that took gold below $1,900 has flushed out a lot
of weak longs and it looks like now we're going for a bit of
consolidation and gold is preparing for another move higher,"
said Michael McCarthy, chief strategist at CMC Markets.
"The outlook remains positive in a lower interest rate
environment, particularly with the weakening U.S. dollar. The
settings are unchanged, we're seeing record amount of stimulus
and have real fears about the risks to growth."
Massive money-printing by global central banks and an
ultra-low interest rate environment amid worries over the
economic fallout from mounting COVID-19 cases have underpinned
demand for bullion, helping it rise about 28% so far in 2020.
Gold is considered a hedge against inflation, and low
interest rates reduce the opportunity cost of holding the metal.
Adding to the gloomy economic outlook, U.S. Federal Reserve
policymakers warned U.S. growth would be muted until the
coronavirus was contained. "Gold continues to garner support from the pandemic as it
continues to impact global economic growth and is dovish for
central bank policy," Phillip Futures' analysts said in a note.
Investors are now waiting for a breakthrough in stalled U.S.
stimulus negotiations while keeping a close watch on frayed
U.S.-China ties ahead of key trade talks on Aug. 15.
Elsewhere, silver XAG= rose 0.8% to $25.76 per ounce,
platinum XPT= gained 0.4% to $934.95 and palladium XPD=
climbed 0.5% to $2,140.89.