(Updates prices)
* Silver up 48% this year, on track for best year since 2010
* Palladium up for fifth year, gaining over 25% in 2020
* Platinum eyes second straight annual gain
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa
By Swati Verma and Sumita Layek
Dec 31 (Reuters) - Gold steadied as the dollar extended
losses on Thursday, with the metal on track for its best year in
a decade on economic uncertainty and as governments worldwide
doled out massive stimulus to lessen the impact of the COVID-19
pandemic.
Spot gold XAU= was trading around $1,892.97 per ounce by
1:53 p.m. EST (1853 GMT). U.S. gold futures GCv1 settled up
0.1%, at $1,895.10.
Bullion has gained 25% so far in 2020 as global central
banks and governments have delivered economic stimulus, laying
the ground for higher inflation and currency debasement.
The U.S. Federal Reserve will remain extraordinarily
accommodative through 2022 and an increasingly progressive
Democratic Party is looking to borrow and spend aggressively,
said Tai Wong, head of base and precious metals derivatives
trading at BMO.
"Based on that, the U.S. dollar has been slumping badly and
can't manage any rally, which is bullish gold," he said.
"However, if the vaccine really is effective and we have the
pandemic beat by summer, that may limit gold gains."
The non-yielding metal is regarded as a hedge against the
inflation that is likely to result from record fiscal stimulus
and ultra-dovish monetary policies.
Outperforming gold this year with a nearly 48% gain, its
strongest performance since 2010, spot silver XAG= was,
however, down 1.2% at $26.30 an ounce on Thursday.
"We forecast further silver outperformance in 2021 on the
basis of additional tailwinds from the green transformation
driving increased industrial demand, together with the expected
economic recovery benefiting silver more than gold," said Saxo
Bank analyst Ole Hansen.
Palladium XPD= looked set to post gains for a fifth
consecutive year, having risen over 25% in 2020, while platinum
XPT= is on track to record a second straight yearly rise,
climbing about 10%.
Palladium jumped 3% to $2,433.61 and platinum eased 0.2% to
$1,063.52.
Both the metals are used by automakers in catalytic
converter manufacturing to clean car exhaust fumes.
With consumers opting for single-family vehicles over public
transport, platinum group metals will benefit from a recovery in
global auto sales, tightening emission standards, and strong
Chinese imports, said Axi chief global market strategist Stephen
Innes.
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Precious Metals performance in 2020 https://tmsnrt.rs/3pD0oop
Silver outperforms other precious metals in 2020 https://tmsnrt.rs/34WnTAI
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