PRECIOUS-Gold rises on soft dollar, stimulus bets as virus risks grow

(Updates prices)
* GRAPHIC-Have vaccines killed the gold rally? * Gold to trend sideways between $1,800 and $1,850 -analyst
* Dollar holds close to nearly three-month lows
* Interactive graphic tracking global spread of coronavirus:
open
* https://tmsnrt.rs/3aIRuz7 in an external browser

By Asha Sistla
Nov 26 (Reuters) - Gold gained on a softer dollar on
Thursday and as a mounting number of COVID-19 cases and their
economic toll raised investor expectations of further fiscal and
monetary support.
Spot gold XAU= was up 0.5% at $1,813.50 per ounce by 1305
GMT. U.S. gold futures GCv1 were up 0.4% to $1,812.10.
The dollar index .DXY held close to near three-month lows,
raising gold's appeal for other currency holders. Meanwhile, an
extension of coronavirus restrictions in Germany and a weak
growth forecast for Britain kept European shares flat. USD/
.EU
Trading was expected to be thinned by the U.S. Thanksgiving
holiday.
"We've had a relatively soft dollar and it hasn't given that
much of a lift to gold during the decline. Now it's giving a
little bit of a tailwind, giving it a lift back towards $1,860,"
said independent analyst Ross Norman.
"(Gold) has found its floor and there's some evidence of
good buying at these lower levels. The lower price has
stimulated good physical buying in the (Asian) markets."
GOL/AS
U.S. Federal Reserve policymakers discussed how the central
bank's asset purchases could be adjusted to provide more support
for markets, according to the minutes of its Nov. 4-5 meeting.
Gold is considered a hedge against inflation likely to
result from large stimulus.
"Persistently high numbers of new corona cases and extended
lockdowns in many countries are increasing the need for further
support in the form of monetary and fiscal policy. A vaccine
will offer no quick-fix in that sense," said Commerzbank analyst
Carsten Fritsch in a note.
"New stimulus measures are therefore likely to be set in
motion in the near future, which should benefit gold. In this
environment, gold is initially likely to trend sideways in a
corridor of between $1,800 and $1,850."
Silver XAG= was up 0.3% to $23.37 an ounce, palladium
XPD= rose 1.4% to $2,361.51, while platinum XPT= fell 0.4%
to $959.62.