PRECIOUS-Gold rises more than 1% on expectations of large U.S. stimulus package

(Updates prices)
* Bitcoin jump also helping sentiment in gold, analysts say
* Investors await progress on U.S. COVID-19 relief package
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Shreyansi Singh
Feb 8 (Reuters) - Gold jumped more than 1% on Monday as
expectations of a large U.S. economic stimulus package bolstered
bullion's appeal as an inflation hedge.
Spot gold XAU= rose 1.1% to $1,831.28 per ounce by 2:23
p.m. EST (1923 GMT). U.S. gold futures GCv1 settled up 1.2% at
$1,834.20.
U.S. President Joe Biden and his Democratic allies in
Congress cleared the path for a $1.9 trillion COVID-19 relief
package as lawmakers approved a budget outline that will allow
them to muscle the plan through without Republican support.
U.S. Treasury Secretary Janet Yellen said on Sunday the
country would get back to full employment next year if Congress
approves the stimulus package.
"Yellen talking about full employment by 2022 with $2
trillion in stimulus is driving the likelihood of a surge in
inflation, which is good for gold," said Tai Wong, head of base
and precious metals derivatives trading at BMO.
Major U.S. stock indexes rose to record highs on the boost
to economic recovery bets. .N
The "inflation trade" could supersede any negative impact
the dollar might have on gold and silver, said Jim Wyckoff,
senior analyst with Kitco Metals.
Gold also seemed to take some cues from another jump in
Bitcoin, after Tesla Inc TSLA.O said it had invested around
$1.5 billion in the cryptocurrency. In its 2020 annual report, Tesla also said it may invest in
"certain alternative reserve assets including digital assets,
gold bullion, gold exchange-traded funds and other assets as
specified in the future."
But "Bitcoin and gold have been basically uncorrelated. The
current surge in Bitcoin may be adding to the sentiment, but is
not a primary driver," BMO's Wong said.
An interest in asset classes that are a store of value such
as gold and silver, after Tesla's Bitcoin purchase, is helping
prices, said David Meger, director of metals trading at High
Ridge Futures.
Meanwhile, silver XAG= rose 2.2% to $27.42 an ounce and
platinum XPT= rose 3.2% to $1,159.73, while palladium XPD=
fell 0.7% to $2,321.41.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Bitcoin vs Gold https://tmsnrt.rs/37b2TYr
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>