PRECIOUS-Gold set for weekly gain as U.S. stimulus hopes dent dollar

(Updates prices)
* Further downside likely for gold in medium-term - analyst
* Silver set for 1st weekly gain in four
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Nakul Iyer
Dec 4 (Reuters) - Gold prices firmed on Friday and were set
for their first weekly gain in four as the dollar weakened on
hopes of more U.S. stimulus, while investors awaited U.S.
non-farm payrolls data due later in the day.
Spot gold XAU= rose 0.1% to $1,842.83 per ounce by 0717
GMT. U.S. gold futures GCv1 were up 0.3% at $1,846.70.
Gold has added about 3% so far this week.
"Upward momentum (in gold) is strong partly because of a
weakening dollar and prices have been technically oversold,"
said Margaret Yang, a strategist at DailyFX, adding that the
metal could find strong support at $1,800 and $1,750.
Yang, however, warned there could be downside risks if
economic recovery quickens and inflation overshoots, prompting
the U.S. Federal Reserve to hold back on monetary stimulus that
could strengthen the dollar.
The U.S. dollar was on course for its worst week since early
November, making gold cheaper for other currency holders. USD/
A bipartisan, $908 billion coronavirus aid plan gained
momentum in the U.S. Congress on Thursday as conservative
lawmakers expressed their support.
Adding support was U.S. drugmaker Pfizer Inc PFE.N citing
supply chain challenges behind its decision to slash 2020
production targets for its coronavirus vaccine. "Most of the bullish drivers that led to the 2020 rally will
increasingly fade, reducing the likelihood for significant price
upside," Fitch Solutions said in a note.
Among other metals, platinum XPT= gained 1.2% to $1,042.05
per ounce and palladium XPD= rose 1.6% to $2,338.32.
"Platinum is attracting renewed interest as a global push
for cleaner energy and waning demand for gold promise to lift
demand for the metal," Avtar Sandu, senior commodities manager
at Phillip Futures, said in a note.
Platinum is used by automakers for catalytic-converter
manufacturing to clean vehicle-exhaust fumes.
Silver XAG= rose 0.6% to $24.21 an ounce and was set to
climb over 6% in the week.