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PRECIOUS-Gold retreats as Treasury yields gain ahead of Biden's stimulus reveal

    * Fed Chair Jerome Powell to attend virtual event at 1730
GMT
    * U.S. House impeaches Trump for a second time
    * Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa

 (Updates prices)
    By Sumita Layek
    Jan 14 (Reuters) - Gold prices inched lower on Thursday as
U.S. Treasury yields rebounded on bets of a sizeable stimulus
from incoming U.S. President Joe Biden, although concerns about
rising inflation limited bullion's losses.
    Spot gold        fell 0.2% to $1,840.55 per ounce by 0729
GMT, while U.S. gold futures        slipped 0.8% to $1,840.10.
    Reports that Biden could announce a $2 trillion coronavirus
relief aid plan later in the day, pushed benchmark 10-year
Treasury yields             near ten-month highs, and helped
lift the dollar.                              
    "Fiscal stimulus will help boost economic recovery, leading
to rising real interest rates as well as bring up Federal
Reserve's tapering hopes; on the flip side, it'll also increase
the inflation outlook," said DailyFX strategist Margaret Yang.
    So, gold will be struggling around these price levels as the
stimulus will have both positive and negative impacts on it, she
added.
    Investors will also be focused on further clues on the U.S.
monetary policy outlook when Fed Chair Jerome Powell
participates in a virtual event, due at 1730 GMT.
    The Fed said on Wednesday the U.S. economy was growing
modestly, although the optimism was tempered due to a surge in
coronavirus cases.             
    "Gold prices can continue to lift, but we also acknowledge
the bear case scenario, where coronavirus vaccines roll out
quickly and successfully lead to the pandemic coming under
control through the year," said Lachlan Shaw, National Australia
Bank's head of commodity research.
    That can prompt the Fed to start contemplating the policy
reversal a bit sooner, he added.
    The U.S. House of Representatives passed a single article of
impeachment accusing President Donald Trump of "incitement of
insurrection", making him the first president in U.S. history to
be impeached twice.            
    Silver        rose 0.3% to $25.22 an ounce. Platinum       
climbed 0.6% to $1,100.53, while palladium        eased 0.2% to
$2,379.86.

 (Reporting by Sumita Layek in Bengaluru; Editing by
Ramakrishnan M. and Shailesh Kuber)
  
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