PRECIOUS-Gold falls on firmer dollar, U.S. stimulus concerns

* Dollar hits near one-week high
* Fed's two-day policy meeting to begin later on Tuesday
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

(Recasts, updates prices)
By Sumita Layek
Jan 26 (Reuters) - Gold prices edged lower on Tuesday as the
dollar strengthened and concerns over the passage of a U.S.
stimulus package weighed on the metal's appeal, while investors
awaited a Federal Reserve policy meeting for cues on the
monetary policy outlook.
Spot gold XAU= fell 0.2% to $1,852.30 per ounce by 0808
GMT. U.S. gold futures GCv1 eased 0.3% to $1,849.60.
"People are going into bonds and dollar, shying away from
gold," said Stephen Innes, chief global market strategist at
financial services firm Axi.
"There's a risk that the stimulus could get delayed until
after (former U.S. President Donald) Trump's impeachment ...
leaving gold on the mercy of the U.S. central bank's whim."
The dollar .DXY hit a near one-week high against rivals,
making gold expensive for other currency holders. USD/
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. "It seems very unlikely that all of $1.9 trillion will be
passed via the Senate, they're probably going to have to give
away quite a bit of it in order to get something passed," said
DailyFX currency strategist Ilya Spivak.
Gold fell despite U.S. 10-year Treasury yields hitting a
three-week low. Lower yields reduce the opportunity cost of
holding non-yielding bullion. US/
The U.S. Federal Reserve's two-day policy meeting is set to
begin later in the day. "If the Fed signals that they're not looking to expand
stimulus, and puts the seeds out there that they might have to
consider exiting sooner than they currently think ... that could
be very detrimental for gold," Spivak said.
Silver XAG= fell 0.2% to $25.25 an ounce, platinum XPT=
lost 1.4% to $1,083.03, and palladium XPD= fell 0.3% to
$2,328.27.