* ECB policy decision due at 1145 GMT
* ANZ expects gold prices reaching $2,300/oz next year
* 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 (Updates prices)
By Brijesh Patel
Sept 10 (Reuters) - Gold steadied near a one-week high on Thursday as the dollar weakened, but the metal traded in a narrow $8 range as investors held back from making large bets ahead of the European Central Bank's monetary policy decision due at 1145 GMT.
Spot gold XAU= was little changed at $1,945.17 per ounce by 0641 GMT, after hitting its highest since Sept. 3 at $1,950.51 on Wednesday.
U.S. gold futures GCcv1 dipped 0.1% to $1,952.40.
"The U.S. dollar is a bit lower, stocks bounced a bit and that essentially carried over to gold as well," said DailyFx currency strategist Ilya Spivak.
Asian stock markets snapped their longest losing streak since February following a bounce on Wall Street, while the dollar index .DXY slipped from four-week highs, making gold less expensive for holders of other currencies. USD/ MKTS/GLOB
Spivak said investors in gold may also be waiting for U.S. CPI data and the Federal Reserve's two-day meeting next week, in addition to the ECB announcement which is a key risk event.
The ECB is all but certain to keep policy unchanged when it announces its decision, which will then be followed by a news conference by its President Christine Lagarde. central banks have rolled out unprecedented stimulus measures and kept interest rates low, driving gold to new highs because of its role as a hedge against inflation and currency debasement.
"Ample money supply, lower interest rates and macro uncertainty should support gold investment," ANZ analysts said in a note. "Physical demand is recovering, so we see the gold price reaching $2,300/oz next year."
On the technical front, spot gold may rise more to $1,965 per ounce, as suggested by a projection analysis and a falling channel, said Reuters technical analyst Wang Tao. TECH/C
Elsewhere, silver XAG= fell 0.4% to $26.92 per ounce, platinum XPT= gained 0.7% at $922.33 and palladium XPD= rose 1.2% to $2,299.33.
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