PRECIOUS-Gold surges nearly 2%, fuelled by hopes of stimulus boost

(Updates prices)
* Gold recovers from near 2-week low hit on Tuesday
* Palladium rises after last session's sell-off
* Interactive graphic tracking global virus spread: open https://tmsnrt.rs/3aIRuz7
in an external browser

By Eileen Soreng
April 22 (Reuters) - Gold prices jumped as much as 1.9% on
Wednesday on expectations for more fiscal and monetary stimulus
measures amid massive economic damage due to stay-at-home and
business shutdown orders around the world to limit the spread of
the novel coronavirus.
Spot gold XAU= was up 1.6% at $1,711.84 per ounce at 1:34
p.m. EDT (1734 GMT), which could be its biggest daily gain in
nearly two weeks. U.S. gold futures GCcv1 settled 3% higher at
1,738.30.
"This is the perfect storm for gold... Perpetual buyer is
buying gold because of all the global stimulus going on," said
Michael Matousek, head trader at U.S. Global Investors.
"Gold is in a bull market. You'll be hard pressed to find
something else that has this type of price action and this trend
going on right now so you naturally have people gravitating
towards it."
Gold tends to benefit from widespread stimulus measures from
central banks, as it is often seen as a hedge against inflation
and currency debasement.
The U.S. House of Representatives will pass Congress' latest
coronavirus aid bill on Thursday, House Speaker Nancy Pelosi
said, paving the way for nearly $500 billion more in economic
relief amid the pandemic. The coronavirus pandemic has forced many countries to extend
lockdowns to curb its spread and unleash unprecedented amounts
of fiscal and monetary to support their economies. "Gold prices are an economic and political barometer of our
well-being and investors are doing what central banks do, buy
gold to shore up currencies," George Gero, managing director at
RBC Wealth Management said in a note.
A jump in the price of oil and hopes of more government
stimulus to ease the economic pain inflicted by the coronavirus
outbreak helped calm global equity markets on Wednesday.
MKTS/GLOB O/R
The bullion had dipped to a near two-week low at $1,659.68
per ounce on Tuesday as a wider market sell-off drove a scramble
for cash and prompted investors to sell precious metals to cover
losses.
"Technically, the gold bulls have the firm overall near-term
technical advantage amid price uptrends in place on the daily,
weekly and monthly charts," Kitco Metals senior analyst Jim
Wyckoff said in a note.
"Bulls' next upside price objective is to produce a close in
June futures above solid resistance at $1,800."
Elsewhere, palladium XPD= rose 0.4% to $1,931.29 per
ounce, having touched a near one-month low in the previous
session.
Platinum XPT= gained 0.9% to $753.03 per ounce, while
silver XAG= rose 1% to $15.07.