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PRECIOUS-Gold falls 1% as dollar accelerates rally

 (Updates prices)
    * Powell sees no reason to alter Fed's accommodative stance
    * Platinum falls as much as 4.4%, silver down 3.8%
    * Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa

    By Shreyansi Singh
    Jan 15 (Reuters) - Gold prices fell more than 1% on Friday
and the metal was heading for a second straight weekly drop as
the dollar continued its upturn, overshadowing bullion's appeal
as an inflation hedge after the U.S. president-elect proposed a
new $1.9 trillion stimulus package.
    Spot gold        was down 1% at $1,827.90 per ounce by 1:49
p.m. EST (1849 GMT), having earlier declined as much as 1.3%,
while U.S. gold futures        settled down 1.2% at $1,829.90.
    The dollar index was on track for its biggest weekly gain
since October 2020, making bullion more expensive for holders of
other currencies.       
    "Bouts of dollar strength and the uptick in U.S. yields have
triggered short-term corrections," said Standard Chartered
Analyst Suki Cooper.  
    "The gold market is caught between longer-term buying on the
back of rising inflation expectations given stimulus measures,
but selling as the dollar has bounced and concern over QE
tapering materialised."
    Benchmark 10-year Treasury yields             held close to
near 10-month highs touched earlier in the week.             
    "The Biden administration should support a much more
expansive spending agenda than before," said Tai Wong, head of
base and precious metals derivatives trading at BMO.
    "But it seems like the stubborn short-term resilience of the
dollar and concern for even higher yields is triggering steady
liquidation in gold."
    U.S. President-elect Joe Biden on Thursday outlined a $1.9
trillion stimulus package proposal. Biden takes office next
Wednesday.            
    While gold is considered a hedge against the inflation and
currency debasement that can result from widespread stimulus, a
recent jump in bond yields has challenged that status as it
increases the opportunity cost of holding non-yielding bullion.
    On the technical front, gold has solid support around
$1,775, and a dip to that level could trigger buying again, said
Michael Matousek, head trader at U.S. Global Investors.
    Silver        fell 3.1% to $24.74 an ounce, having earlier
dipped as much as 3.8%. 
    Platinum        dipped 3.6% to $1,078.21, having declined
4.4% earlier, while palladium        shed 0.7% to $2,391.77.

 (Reporting by Shreyansi Singh in Bengaluru; Editing by Dan
Grebler and Jonathan Oatis)
  
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