PRECIOUS-Gold rises on stimulus bets, subdued dollar

(Updates prices)
* Dollar trades near 2-1/2 year low
* Britain approves Pfizer-BioNTech's COVID-19 vaccine
* Interactive graphic tracking global spread of coronavirus:
open
* https://tmsnrt.rs/3aIRuz7 in an external browser

By Shreyansi Singh
Dec 2 (Reuters) - Gold firmed near an over one-week high on
Wednesday as prospects of a U.S. coronavirus relief package
reinforced its appeal as a hedge against likely inflation and
sent the dollar to a multi-year trough.
Top U.S. economic officials on Tuesday urged Congress to
provide more help for small businesses to cope with the
pandemic, while support was growing for a $1.4 trillion spending
bill. Spot gold XAU= rose 0.7% to $1,827.63 per ounce by 01:49
p.m. EST (1849 GMT). Prices peaked at $1,832.20, the highest
since Nov. 24, earlier in the session.
U.S. gold futures GCv1 settled up 0.6% at $1,830.20.
"We're one step closer to the next stimulus package; that
has weakened the dollar, eroding the currency and supporting
commodity prices across the board, including gold and silver,"
said David Meger, director of metals trading at High Ridge
Futures. U.S. economic growth is moderating as the coronavirus
spreads and fiscal help fades, Philadelphia Federal Reserve Bank
President Patrick Harker said on Wednesday.
Raising gold's appeal for other currency holders, the dollar
held near a 2-1/2 year low. USD/
Non-yielding bullion, which has risen over 20% so far this
year, tends to benefit from widespread stimulus measures because
it is widely viewed as a hedge against inflation and currency
debasement that could result from the stimulus.
The stimulus would drive "some physical demand, encourage
notions of problematic price inflation in the coming months,"
said Kitco Metals senior analyst Jim Wyckoff.
Gold, however, registered its worst monthly performance in
four years in November, weighed down by optimism over a
vaccine-fuelled economic rebound.
Britain on Wednesday became the first country to approve
Pfizer-BioNTech's PFE.N 22UAy.DE COVID-19 vaccine.
Elsewhere, silver XAG= fell 0.2% to $23.96 per ounce.
Platinum XPT= rose 1% to $1,009.90 and palladium XPD= eased
0.4% to $2,397.63.