PRECIOUS-Gold pares gains as the dollar edges higher

(Updates prices)
* U.S. Fed's policy meeting starts on Tuesday
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Shreyansi Singh
Jan 25 (Reuters) - Gold prices pared gains on Monday as the
dollar edged higher, but expectations of fresh U.S. fiscal
stimulus underpinned the bullion ahead of this week's Federal
Reserve's meeting.
Spot gold XAU= was up 0.1% at $1,854.81 by 2:22 p.m. EST
(1922 GMT), after rising as much as 0.8%.
U.S. gold futures GCv1 settled 0.1% lower to $1,855.20 per
ounce.
The dollar .DXY was up 0.2%, making bullion more expensive
for holders of other currencies. USD/
"We're starting to get early indications that the dollar
index has hit a near-term bottom. If that's the case, a rising
dollar would work against the precious market bulls," said Kitco
Metals senior analyst Jim Wyckoff.
"The prospect of inflation down the road given all the
stimulus and central bank easing that has made the world
financial system awash in cash, that's supportive (for gold) on
a longer term basis."
U.S. President Joe Biden's administration countered concerns
about the $1.9 trillion pandemic relief proposal being too
expensive and underlined the need to act swiftly. "We're going to see the underpinnings of support in this
market, whether that support comes from a dovish Fed or ongoing
stimulus measures is the main focal point for this market over
the next several months," said David Meger, director of metals
trading at High Ridge Futures.
The Federal Reserve's two-day policy meeting starts on
Tuesday. The U.S. central bank's policy is expected to remain
firmly in rescue mode, with interest rates pinned near zero.
Lower interest rates decrease the opportunity cost of
holding non-yielding bullion and weigh on the dollar.
Silver XAG= eased 0.2% to $25.34 an ounce, platinum
XPT= fell 0.2% to $1,096.40 and palladium XPD= was down 0.7%
at $2,336.93.