PRECIOUS-Gold rises on weaker dollar, stimulus hopes

(Updates prices)
* Markets optimistic U.S. coronavirus aid bill will be
passed
* Dollar eases as pound, euro gain on Brexit hopes
* Gold may test resistance at $1,888/oz - technical analyst
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Nakul Iyer
Dec 24 (Reuters) - Gold prices edged up on Thursday as the
dollar eased and investors bet on further U.S. stimulus though
President Donald Trump threatened to veto a long-awaited
pandemic relief bill.
Spot gold XAU= rose 0.2% to $1,875.20 per ounce by 0722
GMT, having risen as much as 1% in the previous session. U.S.
gold futures GCv1 were up by 0.1% at $1,880.00.
"Gold prices are riding a near-term bull trend, propelled by
a weaker dollar and a new strain of coronavirus that could
derail the (economic) recovery, hinting at further stimulus
ahead," said Margaret Yang, a strategist at DailyFX.
News that Britain and the European Union were on the cusp of
striking a narrow trade deal lifted the euro and British pound,
pushing the dollar down. USD/
The safe-haven metal also benefited from a more contagious
coronavirus variant that prompted sweeping restrictions in
Britain.
"The overnight rally leaves gold parked in the middle of its
one-week range, lacking the drivers and momentum to attempt a
directional move either way," Jeffrey Halley, a senior market
analyst at OANDA, said in a note.
Gold's next move will depend on whether the fiscal stimulus
situation in the United States is resolved over the next week,
he added.
Rising risks from the new virus variant and surging U.S.
infections have kept investors optimistic about the U.S.
stimulus bill despite Trump's threat to veto the $900 billion
relief package. Gold will move in tandem with COVID-19 developments next
year, while U.S. President-elect Joe Biden's policy on the
dollar and U.S.-China relations will also determine the metal's
trajectory, DailyFX's Yang said.
The metal may test a resistance at $1,888 per ounce, a break
above which could push it to $1,904, Reuters technical analyst
Wang Tao said.
Silver XAG= climbed 0.6% to $25.68 an ounce. Platinum
XPT= gained 0.5% to $1,019.59 and palladium XPD= rose 0.1%
to $2,325.55.