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:
https://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 XAU= 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 GCv1 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. USD/
"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 US10YT=RR held close to
near 10-month highs touched earlier in the week. USD/ US/
"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 XAG= fell 3.1% to $24.74 an ounce, having earlier
dipped as much as 3.8%.
Platinum XPT= dipped 3.6% to $1,078.21, having declined
4.4% earlier, while palladium XPD= shed 0.7% to $2,391.77.