NEW YORK: Gold edged higher on Tuesday as the dollar weakened and hopes for a US coronavirus aid package ahead of the presidential election boosted bullion's appeal as an inflation hedge. Spot gold rose 0.4% to $1,912.71 per ounce by 1:53 p.m. EDT (1753 GMT). US gold futures settled up 0.2% at $1,915.40.

"Gold markets are in a wait-and-see mode in regards to the stimulus plan. It would appear that Republicans and Democrats are still at odds over certain topics within the language," said David Meger, director of metals trading at High Ridge Futures.

US House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin "continued to narrow their differences" on the stimulus package, Pelosi's spokesman Drew Hammill said.

Gold, considered a hedge against inflation and currency debasement, has risen 26% this year amid unprecedented global levels of stimulus during the pandemic. Investors are now waiting for the final debate between US President Donald Trump and his Democratic challenger Joe Biden on Thursday. Among other precious metals, silver rose 1.6% to $24.90 an ounce, platinum jumped 2.6% to $878.95 and palladium gained 2.2% to $2,397.04.