* ECB keeps policy unchanged
* Dollar slips from 4-week high
* Spot gold may rise more to $1,965/oz - technicals
* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Adds comments, updates prices)
By Diptendu Lahiri
Sept 10 (Reuters) - Gold rose to its highest level on over week on Thursday, as the dollar retreated on weaker-than-expected U.S. jobless claims data and as the European Central Bank (ECB) kept its policy unchanged.
Spot gold XAU= rose 0.8% to $1,961.66 per ounce by 1347 GMT, after hitting its highest since Sept. 2 at $1,963.33.
U.S. gold futures GCcv1 were up 0.66 % at $1,967.70.
The dollar index .DXY slipped from four-week highs, making gold less expensive for holders of other currencies, post data showing U.S. jobless claims remaining elevated and the ECB decision. USD/
"The weaker dollar in the very short term and other uncertainties in the long term is keeping the metal supported. Investors had already priced in the ECB's decision," said Robin Bhar, an independent analyst.
But with economic recovery losing momentum and a strong euro dampening inflation expectations, ECB President Christine Lagarde is expected to set the stage for more stimulus at a later time. ECB took a softer stance on the already strong euro and that's weakening the dollar, in turn helping gold," said Michael Hewson, chief market analyst at CMC Markets UK.
Investors now turn their attention to a U.S. Federal Reserve meeting on Sept. 15-16.
Late in August, the Fed said it would adopt an average inflation target, meaning interest rates are likely to stay low even if inflation rises slightly in the future. central banks have introduced unparalleled stimulus and kept interest near zero, pushing gold to new highs, highlighting its role as a buffer against inflation and currency debasement.
"Gold has maintained the 50-day moving average quite well and unless it falls below the August low ($1,863.67), it will remain supported," CMC's Hewson said.
Elsewhere, silver XAG= rose 1.5% to $27.42 per ounce, platinum XPT= gained 1.8% to $932.48 and palladium XPD= was up 1.9% to $2,315.36.
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