* Dollar slides to near two-month low
* Gold may average less than $2,000/oz next year - poll
* Platinum, palladium to gain on auto sector recovery - poll
* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices)
By Asha Sistla
Oct 21 (Reuters) - Gold rose 1% to its highest in over a week on Wednesday as investor optimism that a U.S. coronavirus aid package will be announced before the Nov. 3 presidential elections pressured the dollar and bolstered bullion's appeal as an inflation hedge.
Spot gold XAU= jumped 1% to $1,924.73 per ounce by 1:46 p.m. EDT (1746 GMT), after touching its highest since Oct. 12 at $1,931.01 in earlier trade. U.S. gold futures GCv1 settled up 0.7% at $1,929.5.
"Nancy Pelosi had a Tuesday deadline. Well, now it's been pushed down to Friday. Knowing that, people think a deal might get done in the near future, so they're starting to accumulate gold," said Michael Matousek, head trader at U.S. Global Investors.
White House Chief of Staff Mark Meadows said the biggest sticking point remains funding for state and local governments, but added that progress has been made toward a coronavirus relief deal. increased bets on an eventual breakthrough pushed the dollar .DXY to its lowest in nearly two months, making gold less expensive for holders of other currencies. USD/
Gold, considered a hedge against inflation, currency debasement and uncertainty, has gained more than 26% this year, driven mainly by unprecedented levels of global stimulus to cushion economies from the coronavirus-induced slump.
"What's going to create that demand to propel gold higher? It's going to be the continued stimulus, continued negative interest rates, people worried about the COVID infection spiking because gold is thought of as a safe haven," added U.S. Global Investors' Matousek.
Looking ahead, a Reuters poll predicted that while gold may average less than $2,000 next year as a record rally slows, prices could still touch new highs. PREC/POLL
Elsewhere, silver XAG= rose 1.9% to $25.10 per ounce, platinum XPT= gained 2% to $888.12 and palladium XPD= inched up by 0.1% to $2,400.22.
Platinum and palladium could gain on a tentative recovery in the auto sector, the survey showed.