PRECIOUS-Gold rises as dollar, U.S. Treasury yields slip

* Biden to deliver a plan costing 'trillions' of dollars
* Dollar slips from three-week peak
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

(Recasts, adds comment, updates prices)
By Shreyansi Singh
Jan 12 (Reuters) - Gold prices edged higher in a choppy
trading on Tuesday as the U.S. dollar and Treasury yields eased,
while prospects of higher inflation driven by more U.S. fiscal
stimulus provided further support to the metal.
Spot gold XAU= was up 0.2% at $1,848.31 per ounce by 02:04
p.m. EST (1904 GMT). On Monday, prices touched their lowest
level since Dec. 2.
U.S. gold futures GCv1 settled 0.4% lower at $1,844.20.
"Investors' willingness to buy U.S. debt boosted confidence
in U.S. assets as stocks rallied and the dollar slipped, both of
which helped gold rally a bit," said Tai Wong, head of base and
precious metals derivatives trading at BMO.
The dollar index .DXY slipped 0.3% against its rivals,
while 10-year U.S. treasury yields fell to a session low of
1.146% after a strong 10-year auction. USD/ US/
"There's going to be a big stimulus package that should be
supportive for the gold market, it can not only stimulate demand
but also prompt ideas of some problematic price inflation," said
Kitco Metals senior analyst Jim Wyckoff.
U.S. President-elect Joe Biden said Americans needed more
economic relief from the COVID-19 pandemic and that he would
deliver a plan costing "trillions" of dollars. Gold is generally considered a hedge against the inflation
and currency debasement that can result from widespread
stimulus. However, higher bond yields have challenged that
status recently as they increase the opportunity cost of holding
non-yielding bullion.
While gold was still vulnerable in the short term to gains
in the dollar and yields, "the macro picture is still positive
for gold," said Nicholas Frappell, global general manager at ABC
Bullion.
Silver XAG= gained 2.3% to $25.49 an ounce. Platinum
XPT= climbed 3.3% to $1,065.42 and palladium XPD= rose 0.4%
to $2,381.18.