(Updates prices)
* Asian shares drop as U.S. stimulus talks drag on
* Goldman Sachs (NYSE:GS) forecasts gold at $2,300/oz over 12-month horizon
* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser
By Nakul Iyer
Oct 22 (Reuters) - Gold fell on Thursday as the dollar recovered some lost ground after doubts emerged on whether U.S. lawmakers could reach agreement on a new coronavirus aid package before the November presidential election.
Spot gold XAU= fell 0.3% to $1,919.65 per ounce by 0750 GMT, after hitting more than a one-week high on Wednesday. U.S. gold futures GCv1 slipped 0.3% to $1,923.00.
"Without stimulus, there's a lot of uncertainty and that's driving people to be a bit cautious and move towards the U.S. dollar," said Michael Langford, executive director at corporate advisory and consultancy firm AirGuide.
Stimulus talks between U.S. lawmakers faced a setback on Wednesday when President Donald Trump accused Democrats of being unwilling to craft a compromise on aid. news dented risk sentiment and lifted the dollar .DXY against its rivals, making gold more expensive for holders of other currencies. USD/ MKTS/GLOB
"The Fed is not going to ease anymore, but there's no scope for tightening and that could put a floor under gold," said DailyFx currency strategist Ilya Spivak, adding that the metal was unlikely to rally or fall "catastrophically".
Widely viewed as a hedge against inflation and currency debasement, bullion has gained 26% this year as central banks and governments globally unveiled unprecedented stimulus measures to cushion the economic fallout from the pandemic.
Goldman Sachs forecast gold at $2,300 an ounce over a 12-month horizon and said commodities were likely headed for a bull market next year.
Fiscal and monetary policy in developed markets continue to drive interest rates low and spur demand for inflation hedges, the Wall Street bank said. now await the final U.S. presidential debate between Trump and Democrat rival Joe Biden on Thursday night, and weekly jobless claims due at 1230 GMT.
Elsewhere, silver XAG= fell 0.5% to $24.94, platinum XPT= gained 0.3% at $888.47 and palladium XPD= dropped 0.1% to $2,401.73.