(Updates prices)
* Dollar trades near 2-1/2 year low
* Rising industrial demand to help silver outperform gold- analyst
* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa
By Shreyansi Singh
Dec 1 (Reuters) - Gold jumped more than 2% on Tuesday, rebounding from a five-month low in the last session, and silver soared over 6%, as the dollar slid, with U.S. stimulus bets adding to bullion's appeal as an inflation hedge.
Spot gold XAU= climbed 2.1% to $1,814.99 per ounce by 1:54 p.m. EST (1854 GMT). U.S. gold futures GCcv1 settled up 2.1% at $1,818.90.
Gold plunged to $1,764.29 on Monday, a trough since July 2, driven by a rush to riskier assets.
"We saw gold recapture the $1,800 level and a lot of that has to do with the weakening dollar trade," said Edward Moya, senior market analyst at OANDA.
"The unwind of the gold trade has run its course" and we are likely to see more efforts from the U.S. Congress to support the economy.
Making gold more attractive to investors holding other currencies, the dollar .DXY fell on expectations of more U.S. stimulus. USD/
In remarks released on Monday, Federal Reserve Chair Jerome Powell highlighted challenges of production and mass distribution before the economic impact of a vaccine becomes clear. Fed is going to remain fairly accommodative, OANDA's Moya said.
Gold, considered a hedge against inflation and currency debasement, has risen over 19% this year, helped by unprecedented stimulus to help coronavirus-hit economies.
"The bottom was in for gold now and we see prices north of $2,000 next year," said Daniel Ghali, commodity strategist at TD Securities.
"Gold's actually now in a new regime" with vaccines a likely catalyst for higher inflation expectations as the economy recovers, supporting gold longer term, especially amid lower real rates, Ghali added.
Silver XAG= was up 6% at $23.95 an ounce, after rising to a one-week high earlier in the session.
Rising industrial demand should help silver outperform gold, Fawad Razaqzada, market analyst with ThinkMarkets, said in a note.
Platinum XPT= rose 3.6% to $999.96 and palladium XPD= rose 1.7% to $2,412.93.