(Updates prices)
* Gold break above $1,900/oz could end downtrend - analyst
* Dollar index eases 0.4%
* U.S. Senate set to vote on COVID-19 relief checks on Tuesday
* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa
By Asha Sistla
Dec 29 (Reuters) - Gold prices rose on Tuesday as the dollar weakened after the approval of larger coronavirus relief checks by Democratic-led U.S. House of Representatives, while improved risk appetite kept it below last session's one-week high.
Spot gold XAU= rose 0.4% to $1,879.24 per ounce by 1333 GMT. The metal climbed as much 1.3% on Monday after U.S. President Donald Trump's approval of a $2.3 trillion stimulus package.
U.S. gold futures GCv1 rose 0.2% to $1,884.60.
"Gold is trading technically as well with underlying support coming from the weaker dollar driven by the prospect potentially of an even bigger check being distributed to U.S. consumers," said Saxo Bank analyst Ole Hansen.
"We are entering 2021 with some nervousness as we got stock markets at elevated levels and (on) prospects of additional stimulus against the prospect of vaccine starting to improve the economic outlook... but overall it hasn't reduced the appetite for safe-haven metals."
European stocks extended their year-end rally, while the dollar index .DXY fell 0.4% against rival currencies on hopes of an expanded U.S. stimulus package with the U.S. Senate set to vote on $2,000 COVID-19 relief checks. .EU USD/ bullion's gains was a marathon COVID-19 vaccination campaign across the euro zone, cheering up prospects of global growth in 2021. markets will run with the economic recovery story next year but expansionary fiscal and loose monetary policy will keep gold prices pinned near current levels, said Hitesh Jain, lead analyst at Mumbai-based Yes Securities.
The metal should trade in a range between $1,850-$2,000 in the next three to six months, he said.
Gold, seen as a hedge against inflation, has risen about 23% this year, largely driven by a raft of stimulus measures unleashed to mitigate the impact of the pandemic.
Silver XAG= was up 0.1% at $26.18 an ounce. Platinum XPT= rose 0.8% to $1,039.21 and palladium XPD= gained 0.8% to $2,342.46.