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PRECIOUS-Gold inches lower on firmer dollar, U.S. stimulus worries

PUBLISHED: Tue, 26 Jan 2021 01:13:50 GMT

Jan 26 (Reuters) – Gold prices eased on Tuesday, as a stronger dollar and concerns about the size of U.S. coronavirus relief package dented the metal’s appeal. FUNDAMENTALS * Spot gold was down 0.1% to $1,853.99 per ounce by 0054 GMT. U.S. gold futures eased 0.1% to $1,852.90. * The dollar firmed against an index of rivals, making gold expensive for holders of other currencies. * U.S. President Joe Biden’s $1.9 trillion pandemic relief proposal has been met with objections from Republicans, who have called the proposal too expensive and pushed for a smaller plan targeting vaccine distribution. * Gold is considered a hedge against inflation, likely from widespread stimulus. * Janet Yellen won overwhelming Senate confirmation as the first female U.S. Treasury secretary on Monday and will play a key role in working with Congress on Biden’s coronavirus stimulus plans. * The U.S. Federal Reserve’s two-day policy meeting is scheduled to begin later in the day. * Moderna Inc said on Monday it believes its COVID-19 vaccine protects against new variants found in Britain and South Africa, as global coronavirus cases rose to more than 99 million. * The U.S. House of Representatives on Monday delivered to the Senate a charge accusing former President Donald Trump with inciting insurrection in a speech to his supporters before the deadly attack on the Capitol. * Silver was flat at $25.30 an ounce, platinum lost 0.6% to $1,091.40, and palladium fell 0.3% to $2,327.16. DATA/EVENTS AHEAD (GMT) 0700 UK Claimant Count Unemployment Dec 0700 UK ILO Unemployment Rate Nov 1200 Brazil IPCA-15 Mid-Month CPI Jan 1500 U.S. Consumer Confidence Jan 1600 Russia Industrial Output Dec — U.S. U.S. Federal Reserve’s Federal Open Market Committee starts its two-day meeting on interest rates (Reporting by Sumita Layek in Bengaluru; Editing by Subhranshu Sahu)

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