PRECIOUS-Gold eases on firm dollar ahead of U.S. Fed meeting

* 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

(Updates prices)
By Asha Sistla
Jan 26 (Reuters) - Gold fell on Tuesday as a slightly firmer
dollar and uncertainty over a U.S. stimulus package kept bullion
under pressure, with investors awaiting cues on future monetary
policy decisions from the U.S. Federal Reserve.
Spot gold XAU= fell 0.2% to $1,852.10 per ounce by 1200
GMT. U.S. gold futures GCv1 was down 0.1% to $1,852.70.
"(Gold) is waiting for the Fed, it is waiting for a solid
thing to emerge and as long as we continue to see the strength
we've seen in stock markets over the past couple of weeks, the
focus on safe havens is not as strong," said Saxo Bank analyst
Ole Hansen.
"(The) Fall in bond yields yesterday helped offset some of
that nervousness that crept into the market from potential
inability to reach a (U.S. pandemic relief) deal. If they do
reach a deal it might be a watered down version to get it
through Congress, so that's also weighing on (the gold) market."
U.S. President Joe Biden's $1.9 trillion pandemic relief
proposal faces hurdles as Republicans objected to it for being
too expensive and pushed for a smaller plan targeting vaccine
distribution. 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/
"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," said DailyFX currency strategist
Ilya Spivak.
The U.S. Federal Reserve was due to begin a two-day policy
meeting later on Tuesday. The dollar .DXY hit a near one-week high, making gold
expensive for other currency holders. USD/
Silver XAG= rose 0.3% to $25.38 an ounce, platinum XPT=
lost 0.9% to $1,088.77, and palladium XPD= fell 0.8% to
$2,316.48.