PRECIOUS-Gold rises on U.S. stimulus plans, dovish Fed stance

(Updates prices)
* Gold's price action has consolidated -analyst
* Powell sees no reason to alter Fed's accommodative stance
* Platinum up more than 3% so far this week
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Sumita Layek
Jan 15 (Reuters) - Gold ticked up on Friday as prospects of
a substantial U.S. pandemic relief package boosted the metal's
appeal as an inflation hedge, while the Federal Reserve's dovish
monetary policy stance also supported prices.
Spot gold XAU= rose 0.2% to $1,850.16 per ounce by 0715
GMT, while U.S. gold futures GCv1 eased 0.2% to $1,848.60.
"The stimulus is going to be bullish for asset markets and
with the Fed chair quashing any prospects of raising interest
rates or dialling down bond buying anytime soon, gold is
supported," said Jeffrey Halley, a senior market analyst at
OANDA.
But the price action in gold has consolidated and it is not
showing any signs of trying to break out to the upside, Halley
said.
U.S. President-elect Joe Biden unveiled a $1.9 trillion
stimulus package proposal on Thursday to jump-start the economy
and accelerate coronavirus vaccinations. Federal Reserve Chairman Jerome Powell on Thursday said
there is no reason to alter the central bank's highly
accommodative stance with the U.S. economy still far from its
inflation and employment goals. Easy monetary policy adds pressure on government bond yields
and benefits non-yielding gold.
"Gold's upside looks constrained amid rising yield and
buoyant risky assets. However, a weaker U.S. dollar, stimulus
expectations and depressed real interest rates should remain
supportive," ANZ analysts said in a note.
Benchmark 10-year Treasury yields US10YT=RR eased after
touching a 10-month high earlier in the week. US/
"Short-term headwinds aside ... if inflation expectations
start to increase meaningfully and fast, gold will again become
attractive. We expect gold prices to break above $2,000 again,"
said Harshal Barot, a senior research consultant for South Asia
at Metals Focus.
Silver XAG= fell 0.8% to $25.34 an ounce. Platinum XPT=
fell 1.9% to $1,097.50, but was up more than 3% so far this
week, while palladium XPD= shed 0.7% to $2,392.