PRECIOUS-Gold gains on hopes of increased U.S. pandemic aid

 (New throughout, adds comments, updates prices)
    * Dollar index eases 0.5%
    * U.S. Senate set to vote on COVID-19 relief checks on
Tuesday
    * Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa

    By Shreyansi Singh
    Dec 29 (Reuters) - Gold prices rose on Tuesday as the
prospect of additional U.S.  stimulus bolstered the metal's
appeal and weighed on the dollar, with Washington's lawmakers
set to vote on larger coronavirus relief checks. 
    Spot gold        rose 0.3% to $1,877.41 per ounce by 10:06
a.m. EST (1506 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        rose 0.1% to $1,882.30.
    "You now have a leadership in the U.S. that is going to do
everything possible to defeat the virus - that's going to mean
extended lockdowns, more stimulus and that is going to provide
strong upward support for gold," said Edward Moya, senior market
analyst at OANDA.
    "Investors are bracing for a much stronger wave of stimulus
once (President-elect Joe) Biden comes into office and I think
that's why the gold trade is in check." 
    The dollar index        fell 0.5% against rival currencies,
making greenback-denominated bullion more appealing for other
currency holders.        
    Risk sentiment was also boosted by hopes of an enhanced U.S.
COVID-19 relief package, with the U.S. Senate set to vote on
$2,000 COVID-19 relief checks.                               
    "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," said Saxo Bank analyst Ole Hansen.
    Meanwhile, Europe's COVID-19 vaccination drive helped
prospects of global economic growth in 2021 despite an uneven
start.             
    As 2020 winds down, gold, a hedge against inflation and
currency debasement, has risen about 24% this year, prompted by
stimulus measures rolled out across the globe to curtail the
economic damage from the pandemic. 
    Silver        was up 0.3% at $26.09 an ounce. Platinum
       rose 1.2% to $1,043.57 and palladium        fell 0.2% to
$2,318.64.

 (Reporting by Shreyansi Singh, Aaron Saldanha and Asha Sistla
in Bengaluru; Editing by Dan Grebler)
  
source: reuters.com