PRECIOUS-Gold hits 2-week high as investors eye fresh U.S. fiscal support

(Updates prices)
* Gold hits highest since Nov. 23
* Dollar stalls slide, but still near multi-year lows
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Shreyansi Singh
Dec 8 (Reuters) - Gold rose to a two-week peak on Tuesday,
buoyed by growing expectations of more U.S. fiscal stimulus to
combat the economic impact of rising coronavirus cases, while a
muted dollar added further support.
Spot gold XAU= gained 0.4% to $1,871.65 per ounce by 1:49
p.m EST (1849 GMT). Earlier, it touched $1,875.07, its highest
since Nov. 23.
U.S. gold futures GCv1 settled up 0.5% at $1,874.90.
"We are not too far away from the highs, and once we start
getting stimulus or a clearer picture of how this is all going
to play out, gold and silver will continue to move higher," said
Daniel Pavilonis, senior market strategist at RJO Futures.
Raising gold's appeal for other currency holders, the dollar
index stalled its slide, but was still close to multi-year lows.
USD/ Amid mounting coronavirus cases, the U.S. Congress will vote
this week on a one-week stopgap funding bill to provide
lawmakers more time to reach a deal on COVID-19 relief.
"Further fiscal spending is positive for gold, and the
market appears to be anticipating some type of fiscal package
passage, even if only temporary," James Steel, chief precious
metals analyst at HSBC, said in a note.
But while a broadly defensive dollar, negative real rates
and a "merciless rise in COVID-19 cases" are positive for gold
and silver, "more good news on the vaccine front would be a
powerful negative."
Gold, considered a hedge against inflation and currency
debasement, has risen more than 23% this year, benefiting from
near-zero interest rates and the risk of higher inflation likely
to result from massive stimulus globally. Meanwhile, Britain began its vaccination against COVID-19 on
Tuesday. Silver XAG= rose 0.6% to $24.64 per ounce, while palladium
XPD= fell 0.7% to $2,315.79 and platinum XPT= was up 0.4% at
$1,025.56.