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PRECIOUS-Gold rises despite Trump stimulus threat as dollar weakens

Published 23/12/2020, 03:14 pm
© Reuters.
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(Updates prices)

* Gold could rise to $2,000 next year- analyst

* U.S. President Trump threatens not to sign stimulus deal

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa

By Nakul Iyer

Dec 23 (Reuters) - Gold prices rose on Wednesday, helped by a weaker dollar and as investors remained optimistic about a U.S. stimulus package even after President Donald Trump threatened not to sign the pandemic relief bill.

Spot gold XAU= rose 0.4% to $1,867.47 per ounce by 0804 GMT, while U.S. gold futures GCv1 were steady at $1,870.20.

The U.S. dollar fell 0.3% against major rivals, increasing gold's appeal for holders in other currencies. the market has priced in a lot of pandemic-related uncertainty and the U.S. fiscal stimulus deal, gold will likely tread water in the coming weeks and any potential upside will come from new unknown uncertainties, said Michael Langford, director at corporate advisory AirGuide.

Gold's advance came despite Trump threatening on Tuesday to not sign a coronavirus relief bill, saying it should be amended to increase the amount on offer. are hopeful the stimulus will be passed and that should support gold prices going ahead," said Jigar Trivedi, commodities analyst at Mumbai-based broker Anand Rathi Shares.

He added the metal could rally into 2021 with resistance near gold's record high of $2,072.5.

Raising concerns over a global economic recovery, a new coronavirus strain in Britain has forced several countries to shut their borders to the United Kingdom and drugmakers to scramble to test their COVID-19 vaccines against it. will recover its historical relationship with real yields, and real yields will likely continue to fall so there is no reason to think gold cannot make another push for $2,000 next year if this trend prevails, said IG Market analyst Kyle Rodda.

Gold, seen as a hedge against inflation, benefits from low-interest rates that reduce its opportunity cost.

Silver XAG= rose 1.2% to $25.43 an ounce. Platinum XPT= gained 0.9% to $1,011.36 and palladium XPD= was up by 0.6% at$2,328.42.

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