* U.S. economic recovery remains far from complete- Fed's Powell
* Gold slides from 2-week high of $1,920.71/oz
* Platinum, silver shed more than 4%
* Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Recasts, updates prices, adds comments)
By Arundhati Sarkar and Swati Verma
Oct 6 (Reuters) - Gold declined over 1% on Tuesday, retreating from a two-week high hit earlier, after U.S. President Donald Trump called off negotiations for a coronavirus relief stimulus package until after the election.
Spot gold XAU= dropped 1.4% to $1,886.01 per ounce by 4:06 p.m. EDT (2006 GMT). U.S. gold futures GCcv1 fell 1.6% to $1,890.20 in post-settlement trade after closing 0.6% lower at $1,908.80.
"Gold prices have come under further pressure as President Trump has paused negotiations over the fiscal stimulus package, the dollar has strengthened and weighed on gold prices," said Standard Chartered (LON:STAN) analyst Suki Cooper. USD/ surprise move came after U.S. House of Representatives Speaker Nancy Pelosi said on Sunday that progress was being made in her negotiations with the Trump administration on a relief bill. tends to benefit from widespread stimulus measures from central banks as it is widely viewed as a hedge against inflation and currency debasement. Bullion hit its highest level since Sept. 21 at $1,920.71 earlier on Tuesday.
"Gold needs to hold $1,880 or we could revisit $1,850, but I do feel strongly that this move is temporary, it's not like a deal was imminent," said Tai Wong, head of base and precious metals derivatives trading at BMO.
Earlier in the day, Federal Reserve Chair Jerome Powell warned the U.S. economic recovery remains far from complete and could still slip into a downward spiral if the coronavirus is not effectively controlled and growth sustained. reason that the market is hoping for a fiscal deal is because in our view, gold has actually conditioned from a safe haven asset into an inflation hedge asset," said Daniel Ghali, commodity strategist at TD Securities.
"As an inflation hedge asset, the bottleneck here is actually inflation expectation. The market would need to see them rise further to pull real rates lower and gold higher."
Elsewhere, silver XAG= shed 4% to $23.37 per ounce, platinum XPT= declined 4.6% to $856.15, while palladium XPD= eased 0.9% to $2,341.77.