(Updates prices)
* Germany, Netherlands and London impose pandemic restrictions
* Dollar hovers near 2-1/2-year low
* Investors await policy cues from Federal Reserve
* Interactive graphic tracking global spread of coronavirus: open
* https://tmsnrt.rs/3aIRuz7 in an external browser
By Shreyansi Singh
Dec 15 (Reuters) - Gold gained more than 1% on Tuesday, bolstered by expectations of more coronavirus relief aid in the United States as mounting COVID-19 cases renewed concerns over the pandemic's economic toll.
Spot gold XAU= was up 1.4% at $1,852.36 per ounce by 1:56 p.m. EST (1856 GMT), while U.S. gold futures GCv1 settled up 1.3% at $1,855.30.
"There is the possibility of getting stimulus passed and that is what the gold market has been waiting for," said Jeffrey Sica, founder of Circle Squared Alternative Investments.
"Most people have come to terms with the fact that the vaccine will stop the next wave, but will have very little to do with the current wave."
The rising COVID-19 U.S. death toll put pressure on lawmakers to roll out relief aid, buoying optimism around a proposed $1.4 trillion bill. regarded as a hedge against likely inflation and currency debasement, has risen over 22% so far this year amid the unprecedented stimulus unleashed globally.
Surging COVID-19 infections also led to tighter restrictions being imposed in the Netherlands, Germany and London. weak dollar further enhanced appeal for greenback-denominated bullion. .DXY USD/
Investors also were focused on the outcome of the Federal Reserve's two-day policy meeting that starts on Tuesday, with the U.S. central bank expected to maintain its overnight benchmark interest rate at near zero. has resistance at $1,879 an ounce, with a close above the $1,894 level gearing prices to go up to $1,920, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
Silver XAG= jumped 2.8% to $24.49 an ounce and palladium XPD= gained 1.7% at $2,331.88. Both metals rose more than 3% earlier in the session.
"Silver's dual roles as a precious metal and an industrial material makes it more appealing during times when economic activity is expected to rebound," said Fawad Razaqzada, market analyst with ThinkMarkets.
Platinum XPT= rose 2.6% to $1,033.76 an ounce.