* Biden to deliver a plan costing "trillions" of dollars
* Benchmark 10-year Treasury yields firm at 10-month highs
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa
(Adds graphic, updates prices)
By Asha Sistla
Jan 12 (Reuters) - Gold gained about 1% on Tuesday, bouncing
off a one-month low touched in the last session, as focus
returned to prospects of inflation driven by more U.S. fiscal
stimulus under President-elect Joe Biden.
Spot gold XAU= was up 0.7% at $1,857.63 per ounce at 1218
GMT. On Monday, prices touched their lowest level since Dec. 2.
U.S. gold futures GCv1 gained 0.4% to $1,858.50.
"It's quite clear that the money markets are factoring a
very sizeable fiscal stimulus spend from the Democrats, some
bounce in inflation," said Ross Norman, an independent analyst.
"So gold initially traded lower on those triggers - dollar
and Treasury yields (rising) - now it's trading a little higher
on anticipation of some inflation to come."
U.S. President-elect Joe Biden said Americans needed more
economic relief from the COVID-19 pandemic now and that he would
deliver a plan costing "trillions" of dollars. Gold has generally been seen as a hedge against the
inflation and currency debasement that could result from
widespread stimulus, especially last year. However higher bond
yields have challenged that status recently as they increase the
opportunity cost of holding non-interest-yielding bullion.
"The macro picture is still positive for gold," said
Nicholas Frappell, global general manager at ABC Bullion ,
adding that gold was still vulnerable in the short term to
dollar sentiment and yields.
The dollar index .DXY rebounded from a near three-year low
reached last week when benchmark 10-year U.S. Treasury yields
US10YT=RR topped 1% for the first time since March. USD/
US/
Silver XAG= gained 1.9% to $25.39 an ounce. Platinum
XPT= climbed 3.1% to $1,063.41, while palladium XPD= was up
0.5% at $2,383.74.
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Gold rebounds on rising inflation expectations https://tmsnrt.rs/2XAItTn
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