PRECIOUS-Gold pares gains on dollar rebound, upbeat risk sentiment

(Recasts, adds analysts' comments, updates prices)
* Silver hits one-week peak
* Palladium jumps to over one-month high
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Shreyansi Singh
Dec 28 (Reuters) - Gold prices pared gains in choppy trading
on Monday as the dollar recovered and stock markets continued
their rally, while U.S. President Donald Trump's signing of a
long-awaited pandemic aid bill offered support.
Spot gold XAU= was little changed at $1,875.99 per ounce
by 2:20 p.m. EST (1920 GMT). U.S. gold futures GCv1 settled
down 0.2% at $1,880.40.
"We're going into the holidays. In reality it doesn't take
much to move things right now," said Daniel Pavilonis, senior
market strategist at RJO Futures.
"Maybe it's just the reverberation in the dollar market.
Ultimately gold is going to continue to move higher."
The dollar index .DXY rebounded, after slipping to a
one-week low earlier, making bullion expensive for other
currency holders. USD/
Trump on Sunday signed into law a $2.3 trillion pandemic aid
and spending package, restoring unemployment benefits to
millions of Americans. "Another stimulus package being passed will be inflationary
and boost gold in the future. You should really be buying gold
on these pullbacks," said Michael Matousek, head trader at U.S.
Global Investors.
Gold rose as much as 1.3% to its highest since Dec. 21 at
$1,900.04 during Asian trading hours but pared gains later in
volatile trading due to the holidays.
Gold was dented by an upbeat risk sentiment, with Wall
Street's main indexes touching record highs. .N
Bullion, considered a hedge against inflation, has still
risen over 23% so far this year amid the unprecedented stimulus
unleashed globally.
Silver XAG= jumped 1.8% to $26.32 an ounce, after hitting
a one-week peak of $26.75 earlier. Platinum XPT= climbed 1% to
$1,033.74 and palladium XPD= gained 0.6% to $2,335.52, after
rising to a peak since Nov. 11 at $2,470.43 earlier.