* Gold hits one-week high of $2,014.97/oz
* Silver jumps as much as 3.8%
* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser
(Updates prices)
By Sumita Layek
Aug 18 (Reuters) - Gold rose over 1% to reclaim the key $2,000 an ounce level again on Tuesday as the dollar plunged to two-year lows and the U.S. Treasury yields ticked lower, while investors awaited minutes from the U.S. Federal Reserve's latest meeting.
Spot gold XAU= rose 0.9% at $2,004.21 per ounce by 2:19 p.m. EDT (1819 GMT), after hitting a one-week peak of $2,014.97. U.S. gold futures GCv1 settled up 0.7% at $2,013.1.
"People are watching the dollar index and its pretty alarming how its breaking down and we're seeing all these hard assets like gold and silver rising up in tandem," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
"We're going to run back up to the all-time highs, we had a healthy correction in the gold market, a lot of people who jumped on the bear side of the market are going to end up reversing course."
The dollar index .DXY hit its lowest since May 2018 and the benchmark 10-year U.S. Treasury yields moved lower. USD/ US/
Gold reversed course from earlier in the session, when prices briefly turned negative after the benchmark S&P 500 index hit record highs. .N
Investors were now awaiting minutes from the Fed's last meeting, due on Wednesday. prices have surged 32% this year as unprecedented global stimulus fuelled fears of inflation and currency debasement. USD/ see yield of the real rates falling again, so there is an increase in inflation expectation probably related to the aggressive fiscal stimulus measures," said UBS analyst Giovanni Staunovo.
Also helping gold, U.S. Treasury Secretary Steven Mnuchin on Tuesday said President Donald Trump wants to move forward with more economic aid amid the coronavirus pandemic. other metals, silver XAG= climbed 2.2% to $28.01 per ounce after rising as much as 3.8%.
Platinum XPT= rose 1.1% to $960.39, while palladium XPD= eased 0.2% to $2,195.78.