(Corrects attribution in 13th paragraph)
* Silver hits more than four-year peak
* Palladium reaches highest in nearly three months
* Global shares gain on EU recovery fund and vaccine hopesBy Eileen SorengJuly 21 (Reuters) - Gold rose more than 1% to a nine-yearhigh on Tuesday, propelled by a softer dollar and expectationsof more stimulus measures to resuscitate pandemic-hit economies,while silver sprinted past $20 for the first time sinceSeptember 2016.Spot gold gained 1.1% to $1,834.80 an ounce by 1217GMT, having touched $1,841.01 for its highest since September2011. U.S. gold futures rose 0.8% to $1,831.60."Gold is deriving strength from a broadly weaker dollardespite the improving market mood," said FXTM analyst LukmanOtunuga.
"The fundamental themes weighing on global sentiment remainintact, with rising coronavirus cases in the largest economy inthe world fostering a sense of unease."The dollar eased 0.1% against major currencies aftertouching a more than four-month low.
Gold's advance defied a gain in global equities on theEuropean Union's 750 billion euro ($857 billion) stimulus planand hopes for coronavirus vaccines. Gold is finding support from discussions about new fiscalstimulus, said UBS analyst Giovanni Staunovo.Widespread stimulus tends to support gold because the metalis widely viewed as a hedge against rising prices and currencydebasement. Analysts, however, remain divided on the outlook forinflation.In the United States, too, congressional Republicansannounced plans to seek a further $1 trillion in economicrelief. A surge in coronavirus cases in the United States andglobally have stoked doubts about economic recovery, helpinggold to gain about 20% this year.Silver surged 5.2% to $20.94 an ounce after reachingits highest since July 2016 at $21.04."Silver is starting to outperform gold here," said IGMarkets analyst Kyle Rodda, pointing to increased appeal forprecious metals generally."On top of that, there's likely to be an element of silvercatching a bit on a rebound in global industrial activity," headded.Palladium jumped 3.5% to $2,125.78 an ounce aftertouching its highest since April 21.Platinum rose 2.1% to $861, having earlier touchedits highest since March 11.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Gold-silver ratio ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Eileen Soreng and Brijesh Patel and in BengaluruAdditional reporting by K. Sathya NarayananEditing by Barbara Lewis and David Goodman)
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