PRECIOUS-Gold gains as surging COVID-19 cases fuel stimulus bets

(Adds comments, updates prices)
* Germany, Netherlands and London impose pandemic
restrictions
* Dollar hovers near a two-and-a-half-year low
* Interactive graphic tracking global spread of coronavirus:
open
* https://tmsnrt.rs/3aIRuz7 in an external browser

By Nakul Iyer
Dec 15 (Reuters) - Gold prices rose on Tuesday as surging
COVID-19 cases and restrictions weighed on investors' appetite
for traditionally riskier assets and boosted bets for further
stimulus ahead of the Federal Reserve's policy meet.
Spot gold XAU= rose 0.7% to $1,839.20 per ounce by 0705
GMT, while U.S. gold futures GCv1 gained 0.6% to $1,843.80.
The pandemic continued to spread globally, prompting tighter
restrictions in the Netherlands, Germany and London, while
deaths crossed 300,000 in the United States, pushing Asian
equities to a more than one-week trough.
MKTS/GLOB
"The recent lockdowns mean that there is going to be more
stimulus needed — whether from the (U.S) Congress or from the
U.S. Federal Reserve," said Stephen Innes, chief global market
strategist at financial services firm Axi.
U.S. lawmakers appeared optimistic over a fiscal coronavirus
stimulus deal split into two parts in an attempt to win
approval, pushing the U.S. dollar to languish near multi-year
lows. USD/ Investors also looked forward to policy meetings of the Fed
starting on Tuesday and the Bank of England on Thursday.
"While the Fed is likely to be cautious about further easing
given vaccine rollouts, they will likely signal more
quantitative easing ahead which will be supportive to gold,"
Axi's Innes said.
Coronavirus vaccinations in the United States began on
Monday with a New York City intensive care unit nurse becoming
the first to receive the vaccine. "The Fed is looking to give the U.S. economy a tailwind by
moving simultaneously on monetary policy with fiscal policy,"
said Jeffrey Halley, a senior market analyst at OANDA.
"Gold should find support from the Fed signalling an
intention to cap yields ahead, even if they do not announce a
formal move to."
Silver XAG= rose 1.4% to $24.14 an ounce, platinum XPT=
added 0.2% to $1,009.50 and palladium XPD= gained 0.4% to
$2,302.47.