PRECIOUS-Gold climbs on U.S. stimulus hopes post Fed statement

(Recasts, adds comments, updates prices)
* Silver rises more than 3%
* Fed promises to keep bond purchases going
* Gold up more than 22% so far this year
* Interactive graphic tracking global spread of coronavirus:
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* https://tmsnrt.rs/3aIRuz7 in an external browser

By Shreyansi Singh and Brijesh Patel
Dec 16 (Reuters) - Gold rose on Wednesday on prospects for
more stimulus measures after the U.S. Federal Reserve pledged to
keep its benchmark interest rate near zero until an economic
recovery is complete.
Spot gold XAU= was up 0.5% at $1,862.72 an ounce by 4:16
p.m. EST (2116 GMT). U.S. gold futures GCv1 settled up 0.2% to
$1,859.10.
Fed Chair Jerome Powell said in a news conference the U.S.
economy might take continued support from both fiscal, monetary
policy for recovery. "Powell managed to quell an initial market sell-off by
reassuring that a very vigilant Fed would not hesitate to expand
support if necessary," said Tai Wong, head of base and precious
metals derivatives trading at BMO.
"Powell is quite bullish for H2'21 with the vaccines but
remains quite concerned about the next four to five months. Gold
in particular held key support under $1,850 and bulls will read
the sharp bounce higher is a repudiation of the downside."
Lawmakers in Congress were "closing in" on a $900 billion
COVID-19 aid bill that would include $600 to $700 stimulus
checks and extended unemployment benefits. Bullion has risen over 22% so far this year, banking on its
appeal as a hedge against inflation likely due to the
unprecedented stimulus unleashed in 2020.
The Fed promised to keep funnelling cash into financial
markets to fight the recession, even as policymakers' 2021
outlook improved following initial rollout of a coronavirus
vaccine. Positive news on vaccines has lifted hopes over quick
economic recovery. However, investors still remain concerned
over surging coronavirus cases. Silver XAG= gained 3.5% to $25.35 an ounce, while platinum
XPT= fell 0.4% to $1,032.71. Palladium XPD= rose 0.6% to
$2,331.71.
"Unless the current wave of infections derails the global
economy, recovering industrial production may further boost
silver and the PGMs (platinum group metals)," HSBC analyst James
Steel said in a note.