(Corrects attribution in 13th paragraph)
* Silver hits more than four-year peak
* Palladium reaches highest in nearly three months
* Global shares gain on EU recovery fund and vaccine hopes
By Eileen Soreng
July 21 (Reuters) - Gold rose more than 1% to a nine-year
high on Tuesday, propelled by a softer dollar and expectations
of more stimulus measures to resuscitate pandemic-hit economies,
while silver sprinted past $20 for the first time since
September 2016.
Spot gold XAU= gained 1.1% to $1,834.80 an ounce by 1217
GMT, having touched $1,841.01 for its highest since September
2011. U.S. gold futures GCcv1 rose 0.8% to $1,831.60.
"Gold is deriving strength from a broadly weaker dollar
despite the improving market mood," said FXTM analyst Lukman
Otunuga.
"The fundamental themes weighing on global sentiment remain
intact, with rising coronavirus cases in the largest economy in
the world fostering a sense of unease."
The dollar .DXY eased 0.1% against major currencies after
touching a more than four-month low.
Gold's advance defied a gain in global equities on the
European Union's 750 billion euro ($857 billion) stimulus plan
and hopes for coronavirus vaccines. USD/ MKTS/GLOB
Gold is finding support from discussions about new fiscal
stimulus, said UBS analyst Giovanni Staunovo.
Widespread stimulus tends to support gold because the metal
is widely viewed as a hedge against rising prices and currency
debasement. Analysts, however, remain divided on the outlook for
inflation.
In the United States, too, congressional Republicans
announced plans to seek a further $1 trillion in economic
relief. A surge in coronavirus cases in the United States and
globally have stoked doubts about economic recovery, helping
gold to gain about 20% this year. Silver XAG= surged 5.2% to $20.94 an ounce after reaching
its highest since July 2016 at $21.04.
"Silver is starting to outperform gold here," said IG
Markets analyst Kyle Rodda, pointing to increased appeal for
precious metals generally.
"On top of that, there's likely to be an element of silver
catching a bit on a rebound in global industrial activity," he
added.
Palladium XPD= jumped 3.5% to $2,125.78 an ounce after
touching its highest since April 21.
Platinum XPT= rose 2.1% to $861, having earlier touched
its highest since March 11.
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Gold-silver ratio https://tmsnrt.rs/3hp1dx5
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