PRECIOUS-Gold set for strongest year since 2010

(Updates prices)
* European shares retreat, set to end year with losses
* Silver up 48% this year, also on track for best year since
2010
* Palladium up for fifth straight year, gains 22% in 2020
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Asha Sistla
Dec 31 (Reuters) - Gold prices, though little changed in
holiday-thinned trade on Thursday, were on course for their best
annual performance in a decade.
Spot gold XAU= , up more than 24% this year in its best
performance since 2010, was almost flat at $1,893.10 per ounce
as of 1240 GMT.
U.S. gold futures GCv1 were up 0.2% to $1,897.40.
"With reduced market participants activity on the last day
of the year, I expect gold to move in a narrow range. Some
modest support is coming from a slightly weaker U.S. dollar and
modestly lower U.S. real rates," said UBS analyst Giovanni
Staunovo. US/
"We look for a move towards $1,950 in the first quarter of
2021, with the expansionary monetary and fiscal policy pushing
inflation expectations up and with U.S. real rates falling
further."
The dollar index .DXY fell to a more than two-year trough,
making gold cheaper for other currency holders. USD/
European shares fell as wider coronavirus lockdowns in
Britain reduced expectations for a swift economic recovery in
2021, despite the vaccine roll-out campaigns. .EU Keeping gold's advance in check was Republican Senate
Majority leader Mitch McConnell's refusal for a quick Senate
vote on a bill to increase U.S. relief checks. 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.
Silver XAG= fell 0.6% to $26.45 per ounce but is up more
than 48% this year in its best performance since 2010.
Platinum XPT= rose 0.9% to $1,075.56 per ounce and is up
over 10% in 2020.
Palladium XPD= gained 1.1% to $2,389.15, on track for a
fifth straight year of gains with a 22% rise.

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Precious Metals performance in 2020 https://tmsnrt.rs/3pD0oop
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