PRECIOUS-Gold prices on track for best year in a decade

(Updates prices)
* Asian shares set to end year at record highs
* Silver up 48% this year, also on track for best year since
2010
* Palladium up for 5th straight year, gaining nearly 22% in
2020
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Nakul Iyer
Dec 31 (Reuters) - Gold prices were on course for their best
year since 2010 on Thursday, even as dimming prospects for
increased U.S. stimulus checks and buoyant equities weighed on
the metal in thin trade.
Spot gold XAU= was down 0.2% at $1,890.25 per ounce by
0801 GMT, but was up more than 24% for the year. U.S. gold
futures GCv1 gained 0.2% to $1,897.60.
Denting sentiment, Republican Senate Majority leader Mitch
McConnell refused a quick vote on a bill to increase U.S. relief
checks, saying it had "no realistic path to quickly pass the
Senate". "The (near-term) outlook for gold hinges on what happens
with the final shape of U.S. fiscal stimulus," said IG Market
analyst Kyle Rodda. "It's looking unlikely because McConnell
isn't budging."
Hopes for a swift economic recovery in 2021 put Asian shares
on course to end the year at record highs and pushed the dollar
to a more than two-year trough. MKTS/GLOB USD/ "The dollar is going to weaken quite precipitously until Q1,
giving gold a clear runaway to do well right out of the gates
next year," Stephen Innes, chief global market strategist at
Axi, said, adding that the metal could reach $2,000.
Unprecedented stimulus measures and low interest rates to
cushion economies from the impact of the pandemic this year have
benefited gold, as it is seen as a hedge against inflation.
Gold could move higher with risk assets next year as long as
monetary and fiscal conditions remain accommodative, while lower
yields will encourage investors to hedge riskier assets with
gold, Rodda added.
Silver XAG= fell 0.6% to $26.46 per ounce but was up more
than 48% this year - also its best performance since 2010.
Platinum XPT= dropped 0.2% to $1,063.39 per ounce but was
up over 10% in 2020. Palladium XPD= fell 0.2% to $2,357.35 and
was on track for a fifth straight year of gains with a 21.9%
rise.