PRECIOUS-Gold rises despite Trump stimulus threat as dollar weakens

(Updates prices)
* Gold could rise to $2,000 next year- analyst
* U.S. President Trump threatens not to sign stimulus deal
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Nakul Iyer
Dec 23 (Reuters) - Gold prices rose on Wednesday, helped by
a weaker dollar and as investors remained optimistic about a
U.S. stimulus package even after President Donald Trump
threatened not to sign the pandemic relief bill.
Spot gold XAU= rose 0.4% to $1,867.47 per ounce by 0804
GMT, while U.S. gold futures GCv1 were steady at $1,870.20.
The U.S. dollar fell 0.3% against major rivals, increasing
gold's appeal for holders in other currencies. Since the market has priced in a lot of pandemic-related
uncertainty and the U.S. fiscal stimulus deal, gold will likely
tread water in the coming weeks and any potential upside will
come from new unknown uncertainties, said Michael Langford,
director at corporate advisory AirGuide.
Gold's advance came despite Trump threatening on Tuesday to
not sign a coronavirus relief bill, saying it should be amended
to increase the amount on offer. "Markets are hopeful the stimulus will be passed and that
should support gold prices going ahead," said Jigar Trivedi,
commodities analyst at Mumbai-based broker Anand Rathi Shares.
He added the metal could rally into 2021 with resistance
near gold's record high of $2,072.5.
Raising concerns over a global economic recovery, a new
coronavirus strain in Britain has forced several countries to
shut their borders to the United Kingdom and drugmakers to
scramble to test their COVID-19 vaccines against it.
Gold will recover its historical relationship with real
yields, and real yields will likely continue to fall so there is
no reason to think gold cannot make another push for $2,000 next
year if this trend prevails, said IG Market analyst Kyle Rodda.
Gold, seen as a hedge against inflation, benefits from
low-interest rates that reduce its opportunity cost.
Silver XAG= rose 1.2% to $25.43 an ounce. Platinum XPT=
gained 0.9% to $1,011.36 and palladium XPD= was up by 0.6%
at$2,328.42.