PRECIOUS-Gold gains as dollar weakens ahead of U.S. Senate stimulus vote

(Updates prices)
* Gold could struggle for near-term support - analyst
* Dollar index eases 0.2%, Japanese stocks scale 30-year
peak
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Nakul Iyer
Dec 29 (Reuters) - Gold prices edged up on Tuesday, helped
by a softer dollar, as investors eyed a U.S. Senate vote on
increased pandemic aid, although the gains were capped by higher
Asian stocks.
Spot gold XAU= was up 0.6% at $1,882.11 per ounce by 0819
GMT. The metal climbed as much 1.3% on Monday after U.S.
President Donald Trump's approval of a $2.3 trillion stimulus
package, including nearly $900 billion in COVID-19 aid.
U.S. gold futures GCv1 rose 0.3% to $1,885.70.
"While a weaker dollar has supported gold, the metal is
going to have a hard time finding a supportive narrative given
much of the good news like U.S. stimulus (deal)... looks priced
in, while a resurgent pandemic may drive haven dollar buying,"
said DailyFX currency strategist Ilya Spivak.
"Gold could come under more pressure, as the Fed has little
room to ease further and there is potential for at least a
discussion about tapering quantitative easing if the recovery
outlook improves next year."
The dollar .DXY fell 0.3% against rivals, while Asian
equities firmed, with Japanese stocks hitting a 30-year high
buoyed by optimism ahead of Tuesday's U.S. Senate vote on $2,000
COVID-19 relief checks. MKTS/GLOB
Gold, seen as a hedge against inflation, has gained more
than 23% this year, largely driven by a raft of stimulus
measures unleashed to mitigate the impact of the pandemic.
Broader markets will run with the economic recovery story
next year but expansionary fiscal and loose monetary policy will
keep gold prices pinned near current levels, said Hitesh Jain,
lead analyst at Mumbai-based Yes Securities.
The metal should trade in a range between $1,850-$2,000 in
the next three to six months, he said.
Silver XAG= rose 0.3% to $26.25 an ounce. Platinum XPT=
increased 0.8% to $1,039.07 and palladium XPD= climbed 1.7% to
$2,364.05.