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PRECIOUS-Gold edges down on U.S. stimulus worries, softer dollar limits losses

    * Dollar eases off near one-week high
    * Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa

 (New throughout, updates prices, market activity and comments)
    By Shreyansi Singh
    Jan 26 (Reuters) - Gold prices edged lower on Tuesday on
concerns over a fresh U.S. coronavirus aid package, while a
slightly weaker dollar and subdued treasury yields limited
losses and investors kept a close eye on the Federal Reserve's
policy meeting.
    Spot gold        was down 0.2% to $1,851.26 per ounce at 
01:53 p.m. EST (1853 GMT). 
    U.S. gold futures        settled down 0.2% at $1,850.90.
    "There is no clarity on where fiscal spending is going,
there is no full clarity of how the central bank is going to
react ... these uncertainties are serving as a cap on gold,"
said Bart Melek, head of commodity strategies at TD Securities. 
    However, the dollar        slipped from a near one-week
high, raising gold's appeal for other currency holders.       
    "The U.S. dollar came off a little bit and that's typically
a supportive factor."
    U.S. President Joe Biden's $1.9 trillion pandemic relief
proposal faces hurdles as Republicans voiced concerns over the
cost and lobbied for a smaller plan targeting vaccine
distribution.                          
    "If they do reach a deal it might be a watered down version
to get it through Congress, so that's also weighing on (the
gold) market," said Saxo Bank analyst Ole Hansen.
    Investors now await the U.S. central bank's policy statement
due at the end of a two-day policy meeting on Wednesday.
            
    Meanwhile, U.S. 10-year Treasury yields hit a near
three-week low. Lower yields reduce the opportunity cost of
holding non-yielding bullion.      
    On the physical front, China's net gold imports via Hong
Kong in December rose for a second straight month, although
imports for the year plunged by 85% as the pandemic took its
toll on the country's demand for the metal.             
    Silver        rose 0.6% to $25.46 an ounce, platinum       
edged 0.1% higher to $1,099.74, while palladium        fell 0.6%
to $2,319.75.

 (Reporting by Shreyansi Singh and Asha Sistla in Bengaluru.
Editing by Mark Potter and David Gregorio)
  
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