PRECIOUS-Gold ticks higher as weak U.S. data boosts stimulus bets

* Fed's Powell to attend event at 12:30 p.m. EST/1730 GMT
* Biden could launch a $2 trillion aid package -report
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

(New throughout, adds comments, updates prices)
By Shreyansi Singh
Jan 14 (Reuters) - Gold edged up in choppy trade on Thursday
as data showing a weak U.S. labor market bolstered bets for
more government stimulus, buoying bullion's appeal as an
inflation hedge and countering pressure from a resilient dollar.
Spot gold XAU= was up 0.2% at $1,847.36 per ounce at 10:56
a.m. EST (1556 GMT), while U.S. gold futures GCv1 fell 0.4% to
$1,846.70.
The number of Americans filing first-time applications for
unemployment benefits surged last week.
"This significant jump is reminding everyone that the labor
market situation is still dire, and it's going to warrant more
stimulus," said Edward Moya, senior market analyst at OANDA,
adding that concerns over the ongoing coronavirus pandemic
remained supportive for gold.
But the biggest uncertainty for the precious metal will be
the direction of U.S. Treasury yields, Moya said.
While gold is considered a hedge against the inflation and
currency debasement that can result from widespread stimulus, a
recent jump in bond yields has challenged that status as it
increases the opportunity cost of holding non-yielding bullion.
Treasury yields shot higher in the past week through Tuesday
on expectations for the fresh stimulus.
US/ USD/
President-elect Joe Biden is scheduled to unveil a stimulus
package proposal on Thursday that could exceed $1.5 trillion.
Federal Reserve Chair Jerome Powell's participation in a
virtual event at 12:30 p.m. EST (1730 GMT) on Thursday is also
on investors' radar. But looking ahead, "both a stronger dollar and higher
interest rates are going to be a negative factor for precious
metals," said Chris Gaffney, president of world markets at TIAA
Bank.
On the technical front, $1,890 posed key resistance for
gold, he added.
Meanwhile, the dollar also held onto gains versus other
currencies. USD/
In other metals trading, silver XAG= gained 1.7% to $25.57
an ounce, platinum XPT= climbed 1.5% to $1,109.98 per ounce
and palladium XPD= was up 0.3% at $2,391.08.