PRECIOUS-Gold falls on firmer dollar and U.S. yields

(Updates prices)
* Dollar's upside likely to be short-lived- analyst
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Shreyansi Singh
Jan 7 (Reuters) - Gold slipped on Thursday, weighed down by
a stronger dollar and higher U.S. Treasury yields, although the
prospect of further fiscal stimulus under a Democrat
administration capped losses.
Spot gold XAU= fell 0.3% to $1,913.87 per ounce by 1:43
p.m. EST (1843 GMT). U.S. gold futures GCv1 settled up 0.3% at
$1,913.60.
Prices slipped as much as 2.5% after scaling their highest
since Nov. 9 on Wednesday, as 10-year U.S. Treasury yields
US10YT=RR jumped over 1% for the first time since March.
The higher yields are pulling some "flight to safety money
out of the gold market," said Bob Haberkorn, senior market
strategist at RJO Futures.
But while the stronger dollar is weighing on gold, the
greenback's upside is likely to be "short lived," he added.
The dollar index .DXY rebounded from a multi-year low,
making bullion less attractive for other currency holders. USD/
A Democrat victory in the U.S. Senate runoffs stoked
inflation expectations as investors raised bets for more fiscal
stimulus, while the U.S. Congress certified President-elect Joe
Biden's win. "The double Democratic win in Georgia increases expectations
of larger stimulus support and higher infrastructure spending,"
Standard Chartered Analyst Suki Cooper said, adding higher
inflation expectations would support upward momentum in gold.
On the technical front, gold is no longer in 'overbought'
territory and $1,965 an ounce is a key resistance level, she
said, with near term support around $1,894.
The non-yielding metal is considered a hedge against
inflation and currency debasement likely to be spurred by
widespread stimulus measures.
"There's going to be more downside for the dollar, and
that's also going to be bullish for the metals," said Kitco
Metals senior analyst Jim Wyckoff.
Silver XAG= fell 0.5% to $27.16 per ounce. Platinum XPT=
rose 1.4% to $1,117.06 per ounce, while palladium XPD= slipped
0.6% to $2,423.82.