PRECIOUS-Gold holds near 2-week peak on stimulus hopes

(Adds analyst comment, updates prices)
* Gold hits highest since Nov. 23
* Vaccine may be negative for gold in second half of 2021
-analyst
* California imposes new COVID-19 restrictions
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Asha Sistla
Dec 8 (Reuters) - Gold steadied near a two-week high on
Tuesday as optimisim over the rollout of a COVID-19 vaccine
countered the market impact of a subdued dollar and hopes for
more fiscal stimulus.
Spot gold XAU= was little changed at $1,864.60 per ounce
by 1300 GMT. Earlier, it touched its highest since Nov. 23 of
$1,871.52.
U.S. gold futures GCv1 were up 0.2% to $1,869.40.
"We saw this washout in the gold price and break of
technical levels. Now that it has recovered again in the same
environment where real rates are coming under pressure, causing
the dollar to weaken, this is normally an environment where gold
prices increase," said UBS analyst Giovanni Staunovo.
The dollar index held near 2-1/2 year lows, raising gold's
appeal for other currency holders. USD/
The U.S. Congress is expected to vote this week on a
one-week stop-gap funding bill to provide more time to reach a
deal on COVID-19 economic relief. "In view of the persistently high numbers of new corona
cases, which are resulting in tougher lockdowns (e.g.
California, Germany), there is growing pressure on politicians
to roll out further stimulus measures," said Commerzbank analyst
Carsten Fritsch in a note. Gold is up about 23% this year, benefiting from its appeal
as a hedge against inflation that could result from the
unprecedented stimulus unleashed in 2020.
Meanwhile, Britain began its vaccination against COVID-19 on
Tuesday. "The vaccine is more widely available for the rest of the
population only next year, not now. The challenges on the
economic side are still present and we still need support from
the fiscal or monetary side," said Staunovo, adding the vaccine
may negatively impact gold in the second half of 2021.
Silver XAG= rose 0.4% to $24.59 per ounce, while palladium
XPD= fell 0.7% to $2,315.98 and platinum XPT= was up 0.1% to
$1,022.44.