PRECIOUS-Gold pares gains as stock markets climb, dollar steadies

(Adds analyst comments, detail, updates prices)
* Silver hits 1-week peak
* Dollar steadies after slipping to 1-week low
* Markets in Britain closed for the Boxing Day holiday
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Asha Sistla
Dec 28 (Reuters) - Gold prices pared gains on Monday as the
dollar recovered losses and stock markets rallied after U.S.
President Donald Trump signed a long-awaited pandemic aid bill,
while liquidity remained low on account of the holiday season.
Spot gold XAU= was little changed at $1,877.20 per ounce
by 1301 GMT, having earlier risen as high as $1,900.04 an ounce.
U.S. gold futures GCv1 were down 0.2% to $1,878.70.
"I think you're seeing some profit-taking coming into the
end of the year," said independent analyst Robin Bhar.
"There are a significant amount of people being vaccinated
with the first dosage and there are plans to widen that, and we
are hearing similar stories around the world. This could be a
reason why gold is being capped at $1,900."
Pfizer PFE.N is expected to complete distribution of an
initial 200 million doses of the COVID-19 vaccine to the
European Union by September, a spokesman for the EU Commission
said on Monday. Futures tracking the S&P 500 and the Nasdaq were at record
levels after Trump signed into law a $2.3 trillion pandemic aid
package, restoring unemployment benefits to millions of
Americans. Markets in Britain remained closed on Monday for the Boxing
Day holiday.
Gold earlier hit its highest since Dec. 21 as the dollar
index .DXY slipped to a one-week low, lifting bullion's appeal
for other currency holders. USD/
"Gold prices found support just below $1,800 per ounce
earlier, and it moved below the 200-day moving average and now
it's above again - so that gives a bit more optimism on the
outlook for at least the start of 2021," said ABN Amro analyst
Georgette Boele.
Silver XAG= was up 1.9% at $26.34 an ounce, after hitting
a one-week peak of $26.75 earlier in the session. Platinum
XPT= climbed 1.2% to $1,035.55 and palladium XPD= gained
1.2% to $2,377.38.