(Updates prices)
* Dollar slips to multi-year lows
* Platinum hits highest level since August 2016
* Silver hits over three-month peak
* Silver set to shine in 2021
* Interactive graphic tracking global spread of coronavirus: By Shreyansi SinghJan 4 (Reuters) - Gold prices rose more than 2% on Monday totheir highest level in nearly two months, bolstered by thedollar's slide ahead of runoff elections for both U.S. Senateseats from Georgia.Spot gold was up 2.4% at $1,943.13 an ounce by 2 p.m.EST (1900 GMT). The session high of $1,944.11 was its highestmark since Nov. 9.
U.S. gold futures settled up 2.7% at $1,946.60."There is the likelihood that we will see significantstimulus, which will lead to further declines in the dollar,"said Jeffrey Sica, founder of Circle Squared AlternativeInvestments.The dollar index slid to a 2-1/2 year low, makingbullion cheaper for holders of other currencies. Investors were watching Tuesday's run-off elections inGeorgia, which will decide which party controls the U.S. Senate. "The Senate election this week could turn out to be a majordisruptive event so gold is rallying on that," Sica added.If President-elect Joe Biden's Democrats gain control ofboth houses of the U.S. Congress, his administration would findit easier to push policies such as rewriting the tax code toboosting stimulus and infrastructure spending. Many investors view non-yielding bullion as a hedge againstinflation and currency debasement that they fear could resultfrom large stimulus measures. Tougher lockdown restrictions are expected in Britain andJapan, as COVID-19 cases mount. The coronavirus variant in South Africa is likely to have animpact on precious metals prices, said StoneX analyst RhonaO'Connell.
"The ban on flights out of South Africa is going to hitprecious metals exports - certainly gold, platinum and palladium... which are transported by air, and the majority of that is onpassenger flights," she said.Platinum eased 0.4% to $1,063.87 after hitting itshighest level since August 2016 at $1,127.82.Silver gained 3.1% to $27.17 an ounce, touching itshighest price since Sept. 15, 2020, earlier, while palladium dipped by 3.1% to $2,372.92. (Reporting by Shreyansi Singh and Asha Sista in BengaluruEditing by David Gregorio and Matthew Lewis)
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