PRECIOUS-Gold inches higher as U.S. dollar eases off one-month peak - Reuters

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    * Yields will be key consideration for gold traders -
strategist
    * Caution sets in ahead of Janet Yellen's testimony before
Senate
    * Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa

 (Adds comment, updates prices)
    By Sumita Layek
    Jan 19 (Reuters) - Gold prices ticked up on Tuesday, off a
1-1/2-month low hit in the previous session, as the U.S. dollar
slipped while prospects of further global stimulus underpinned
the safe-haven metal.
    Spot gold        edged up 0.1% to $1,837.79 per ounce by
0537 GMT, recovering from its lowest since Dec. 2 at $1,809.90
hit on Monday. U.S. gold futures        gained 0.5% to
$1,839.40.
    "The key factor appears to be the (U.S.) currency," Michael
McCarthy, chief market strategist at CMC Markets said, adding
that despite a recent bounce in the dollar, there can be further
weakening and that will support bullion.
    The dollar        fell from a four-week high marked in the
previous session, ahead of U.S. Treasury Secretary nominee Janet
Yellen's testimony before the Senate.                   
    The greenback started the year with a near 2% rally against
major peers, supported by a rise U.S. Treasury yields in
response to U.S. President-elect Joe Biden's plan for a $1.9
trillion pandemic relief package.
    Benchmark 10-year Treasury yields             were
range-bound, but held above 1%.      
    "Bond markets are clearly sitting on a change in conditions,
and we might have seen the lows for interest rates for this
cycle ... that'll be the key consideration for gold traders this
year," McCarthy said.
    Investors now looked ahead to the next round of fiscal
stimulus in the United States with President-elect Joe Biden's
$1.9 trillion stimulus package proposal. Biden is set to be
inaugurated on Wednesday.                         
    Euro zone finance ministers also pledged continued fiscal
support for their economies.             
    "Global central bank members are cognizant that even though
equity markets are doing well, the underlying economy is still
very weak and stimulus measures are needed," said Michael
Langford, director at corporate advisory AirGuide.
    With a weaker dollar, negative real yields and potential for
a surge in inflation, investment flows to Exchange Traded Funds
and a pick-up in physical gold demand in China; gold's upside is
very compelling, Langford said.
    Silver        fell 0.9% to $25.11 an ounce. Platinum       
rose 1.4% to $1,093.93 while palladium        climbed 0.3% to
$2,379.57.

 (Reporting by Sumita Layek in Bengaluru; Editing by Subhranshu
Sahu and Sherry Jacob-Phillips)
  

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