(Adds comments, updates prices)
* Gold could rise to $2,000 next year- analyst
* U.S. President Trump threatens not to sign stimulus deal
* Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa
By Nakul Iyer
Dec 23 (Reuters) - Gold prices ticked higher on Wednesday as
weakness in the dollar offset worries about a U.S. stimulus deal
after President Donald Trump threatened not to sign the pandemic
relief bill.
Spot gold rose 0.3% to $1,865.01 per ounce by 0333
GMT, while U.S. gold futures were steady at $1,869.80.
The U.S. dollar edged down 0.1% against a basket of
currencies, increasing gold's appeal among holders of other
units.
Since the market has priced in a lot of pandemic-related
uncertainty and the U.S. fiscal stimulus deal, gold will likely
tread water in the coming weeks and any potential upside will
come from new unknown uncertainties, said Michael Langford,
director at corporate advisory AirGuide.
"The next move for fund managers is probably to de-risk ...
I think we'll see greater flows towards gold exchange-traded
funds as they take some risk off the table," Langford said.
Raising concerns over a global economic recovery, a
fast-spreading new coronavirus strain found in Britain has
forced several countries around the world to shut their borders
to the United Kingdom and drugmakers to scramble to test their
COVID-19 vaccines against it.
Gold has climbed 22.9% so far this year on the back of large
stimulus measures to aid pandemic-ravaged economies, as it is
seen as a hedge against inflation likely to result from such
stimulus and benefits from low-interest rates that reduce its
opportunity cost.
Gold will recover its historical relationship with real
yields, and real yields will likely continue to fall so there is
no reason to think gold cannot make another push for $2,000 next
year if this trend prevails, said IG Market analyst Kyle Rodda.
Silver rose 0.8% to $25.31 an ounce. Platinum
rose 0.1% to $1,002.86 and palladium gained 0.2% to
$2,318.23.
(Reporting by Nakul Iyer in Bengaluru; Editing by Subhranshu
Sahu, Aditya Soni)
.Source
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