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PRECIOUS-Gold slips as yields gain, but set for best week in five

    * Benchmark 10-year U.S. Treasury yields firm above 1%
    * Silver poised for best week in five, up 2.9% so far
    * Platinum set for 2nd consecutive weekly gain, up 2.8%
    * Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa

 (Updates prices)
    By Sumita Layek
    Jan 22 (Reuters) - Gold fell on Friday as U.S. Treasury
yields rose, though the metal was on course for its best week in
five helped by hopes of a large U.S. stimulus.
    Spot gold        fell 0.6% to $1,859.10 per ounce by 0828
GMT, retreating from a near two-week peak hit on Thursday. For
the week, it rose 1.8% - its biggest weekly gain since the week
ending Dec. 18.
    U.S. gold futures        eased 0.3% to $1,860.90.
    "Gold is struggling due to a lift in nominal yields, which
came off the back of strong U.S. jobless claims number, also the
European Central Bank (ECB) came out a little less dovish than
the market would like," said IG Market analyst Kyle Rodda.
    Benchmark 10-year U.S. Treasury yields             held firm
above 1%, helping the dollar rise.                       
    U.S. weekly jobless claims decreased modestly last week, but
concerns over the impact of COVID-19 persisted.             
    European Central Bank President Christine Lagarde indicated
on Thursday the bank may not use the Pandemic Emergency Purchase
Programme in full if financial conditions remain favourable.
            
    "The nervousness on whether the U.S. stimulus is going to
pass as smoothly as the market has originally thought is
weighing on gold," said Jeffrey Halley, a senior market analyst
at OANDA.
    U.S. President Joe Biden's $1.9 trillion stimulus plan will
have to pass through the Senate, where the size of the aid might
get watered down, according to analysts.             
    "Ultimately, the outlook is still constructive for gold, as
the Federal Reserve won't taper its balance sheet and let yields
rise too high. But ... the trend is to the downside for the time
being," Rodda said.   
    Silver        shed 2% to $25.43 an ounce, but was set to
register its best week in five, up 2.9%.
    Platinum        fell 2% to $1,104.20, but was set to post
its second consecutive weekly gain, up 2.8%. 
    Palladium        eased 0.1% to $2,359.52.

 (Reporting by Sumita Layek in Bengaluru; Editing by Krishna
Chandra Eluri and Subhranshu Sahu)
  
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