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PRECIOUS-Gold gains as stocks dip on Washington woes, slow vaccine rollouts

    * Gold underpriced at current levels - economist
    * Benchmark 10-year Treasury yields firm at 10-month highs
    * Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa

 (Adds comment, updates prices)
    By Sumita Layek
    Jan 12 (Reuters) - Gold rose on Tuesday, rebounding from a
near six-week low touched in the previous session, as stocks
slipped on political turmoil in Washington and the slow pace of
COVID-19 vaccinations across the world.
    Spot gold        rose 0.8% at $1,860.10 per ounce by 0724
GMT. On Monday, prices touched their lowest since Dec. 2. U.S.
gold futures        gained 0.5% to $1,860.
    We are seeing a technical rebound in gold after investors
booked some profits in the last two sessions, said Kunal Shah,
head of research at Nirmal Bang Commodities in Mumbai.
    Asian stocks eased from record highs as Democrats in the
U.S. House of Representatives barrelled towards impeaching U.S.
President Donald Trump in the wake of Capitol siege last week
and on rising COVID-19 cases.                        
    "The macro picture is still positive for gold," Nicholas
Frappell, global general manager at ABC Bullion said, adding in
short-term gold is still vulnerable to dollar sentiment and
yields.
    Benchmark 10-year Treasury yields             held at
10-month highs, helping the dollar and making gold expensive.
           
    Higher bond yields increase the opportunity cost of holding
the non-interest yielding gold.
    Global coronavirus infections stood at more than 90 million
as countries struggle with the pace of vaccinations.
                                     
    "Gold looks underpriced at current levels. The new (virus)
strain reminds us of the fact that 2021 may not be materially
different from 2020 if the world doesn't get the vaccine fast
enough," said Howie Lee, an economist at OCBC Bank.
    The Federal Reserve will be cautious about the timeline of
tapering, Lee said, even as money markets have increased bets it
would start unwinding its asset-purchase programme by the end of
the year.             
    Silver        gained 2.2% to $25.47 an ounce. Platinum
       rose 3.1% to $1,062.83, while palladium        climbed
0.2% to $2,376.57.

 (Reporting by Sumita Layek in Bengaluru; Editing by
Ramakrishnan M. and Rashmi Aich)
  
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