(Adds comment, updates prices)
* Markets optimistic U.S coronavirus aid bill will be passed
* Gold may test resistance at $1,888/oz - technical analyst
* Silver up nearly 8% so far this week
* Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa
By Nakul Iyer
Dec 24 (Reuters) - Gold prices gained on Thursday, supported
by a weaker dollar as investors bet on further U.S. stimulus
following dour economic data even as President Donald Trump
threatened to veto a long-awaited pandemic relief bill.
Spot gold rose 0.2% to $1,875.61 per ounce by 0316
GMT. U.S. gold futures rose 0.2% to $1,881.20.
"Gold prices are riding a near-term bull trend, propelled by
a weaker dollar and a new strain of coronavirus that could
derail the recovery, hinting at further stimulus ahead," said
Margaret Yang, a strategist at DailyFX.
News that Britain and the European Union appeared close to
clinching a long-elusive trade deal on Wednesday lifted the Euro
and British pound, pushing down the dollar.
Safe-haven gold has also benefited from the spread of a more
contagious variant of the virus in Britain that has forced the
country to impose sweeping restrictions.
The rising risks from the new virus variant and surging U.S.
infections have kept investors optimistic about the U.S.
stimulus bill despite Trump's threat to veto the $900 billion
relief package.
Underscoring the economic hit from the pandemic, data on
Wednesday showed elevated U.S. jobless claims and a drop in
consumer spending for the first time since May in November.
Gold is considered as a hedge against inflation and monetary
debasement.
Gold prices will move in tandem with COVID-19 developments
next year, while President-elect Joe Biden's policy on the
dollar and Sino-U.S. relations will also determine the metal's
trajectory, DailyFX's Yang said.
On the technical front, gold may test a resistance at $1,888
per ounce, a break above which could lead to a gain to $1,904,
Reuters technical analyst Wang Tao said.
Silver climbed 0.6% to $25.69 an ounce. Platinum
gained 0.3% to $1,017.43 and palladium rose 0.4%
to $2,333.60.
Most markets will be closed on Friday for Christmas.
(Reporting by Nakul Iyer in Bengaluru; Editing by Subhranshu
Sahu, Aditya Soni)
.Source
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