(Updates prices)
* Dollar hits lowest level since April 2018
* First case of new virus variant detected in the United States
* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa
By Asha Sistla
Dec 30 (Reuters) - Gold prices held steady on Wednesday, as Britain's approval of the COVID-19 vaccine developed by AstraZeneca AZN.L and Oxford University drove appetite for risk and a weaker dollar limited bullion's losses in thin holiday trade.
Spot gold XAU= was little changed at $1,877.87 per ounce by 1205 GMT. U.S. gold futures GCv1 were down 0.1% to $1,881.80.
"You have the vaccine news which is a bit positive (for the economy) but the dollar is still quite weak after approval of the U.S. fiscal stimulus," said Bank of China International analyst Xiao Fu.
European stocks gained after Britain became the first to approve the COVID-19 vaccine developed by AstraZeneca and Oxford University. .EU underpinning gold, the dollar index .DXY hit a more than two-year low, as traders shrugged off Republican Senate Majority Leader Mitch McConnell's decision to delay a vote on increasing COVID-19 relief checks to $2,000. USD/ is seen as a hedge against inflation and currency debasement likely to result from large stimulus measures.
"The bigger picture is that gold is still holding up incredibly well at these price levels and the fiscal and monetary stimulus will still be there in 2021 as the pandemic is hitting hard in the U.S., Europe," said Bank of China International's Fu.
Investors await the Jan. 5 Georgia runoff elections that will determine which political party will control the U.S. Senate, with expectations for more stimulus under a Democrat-controlled Senate and House. fund flows are set to have a major say on how gold performs over the course of 2021, with investors expected to wade further out into risk-on waters," said FXTM market analyst Han Tan. GOL/ETF
Among other precious metals, silver XAG= was up 0.4% to $26.28 an ounce, platinum XPT= gained 1.1% to $1,060.68 and palladium XPD= rose 0.7% to $2,344.72.