Gold jumps over 1% as surging virus cases renew stimulus hopes

Gold last traded at $1,884 an ounce. Silver at $25.94 an ounce.

NEWS SUMMARY: Precious metal prices traded sharply higher Thursday on safe-haven buying and a weaker dollar. U.S. stocks rose as investors monitored progress on additional stimulus aid.

CNBC--"Gold prices gained more than 1% on Tuesday, bolstered by expectations of more coronavirus relief aid in the United States as mounting COVID-19 cases renewed concerns over the pandemic's economic toll.

'There is the possibility of getting stimulus passed and that is what the gold market has been waiting for,' said Jeffrey Sica, founder of Circle Squared Alternative Investments. 'Most people have come to terms with the fact that the vaccine will stop the next wave, but will have very little to do with the current wave.'

A staggering COVID-19 U.S. death toll put pressure on lawmakers to roll out relief aid, buoying optimism around a $1.4 trillion bill. Gold, regarded as a hedge against likely inflation and currency debasement, has risen over 22% so far this year amid the unprecedented stimulus unleashed globally....

Silver jumped 2.7% to $24.45 an ounce, and palladium gained 1.9% to $2,336.62. Both metals rose more than 3% earlier in the session.

'Silver's dual roles as a precious metal and an industrial material makes it more appealing during times when economic activity is expected to rebound,' said Fawad Razaqzada, market analyst with ThinkMarkets."