* Weekly jobless claims inch lower but remain elevated
* Trump says talks ongoing for fiscal aid
* Gold going to be volatile over the next few months -analyst
* Interactive graphic tracking global spread of coronavirus:
* https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Updates prices)
By Arundhati Sarkar
Oct 8 (Reuters) - Gold edged up on Thursday as uncertainty about the U.S. presidential election and bets that fresh stimulus would drive inflation offset investors' improved appetite for riskier assets.
Spot gold XAU= was up 0.1% at $1,889.50 per ounce by 1:40 pm EDT (1740 GMT). U.S. gold futures GCcv1 settled 0.2% higher at $1,895.10.
While there is a "pretty robust increase in risk appetite," with a firm dollar also weighing, inflation expectations are keeping gold supported, said Bart Melek, head of commodity strategies at TD Securities.
"We're not saying that there's going to be an inflation problem right away, but the concern is that if the policies continue and are repeated post election, then we would likely see both a lower dollar and real rates that will likely move lower."
Capping bullion's advance, Wall Street's main indexes rose to a one-month high as U.S. President Donald Trump's comments raised hopes for fresh fiscal stimulus, even as a recovery in the labor market struggled to gain momentum. .N
U.S. data on Thursday showed fewer Americans filed new claims for jobless benefits last week, but the number remained stubbornly high. is still up 24% so far this year, boosted by unprecedented government and central bank stimulus worldwide to revive economies as it is viewed as an inflation hedge and a safe refuge during economic and political uncertainty.
"It's (gold) going to move higher, it's going to be volatile. That's going to be true for the next month going into the election, it's going to be true for the two months after the election," said Jeffrey Christian, managing partner of CPM Group.
Among other metals, silver XAG= eased 0.1% to $23.81 per ounce. Platinum XPT= shed 0.2% to $862.81 per ounce, while palladium XPD= gained 2% at $2,399.31 per ounce.