PRECIOUS-Gold drifts higher from 1-1/2 month low despite buoyant dollar - Reuters

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    * Dollar index hits four-week high
    * Janet Yellen nominated for U.S. Treasury secretary
    * Interactive graphic tracking global spread of coronavirus:
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 (Adds analyst comments, updates prices)
    By Asha Sistla
    Jan 18 (Reuters) - Gold prices edged higher on Monday on the
prospect of extended U.S. fiscal stimulus and accommodative
monetary policies, although bullion held close to the 1-1/2
month low hit earlier as the dollar extended gains.
    Spot gold        was up 0.3% to $1,832.31 per ounce at 1029
GMT, after falling to $1,809.90, its lowest since Dec. 2. U.S.
gold futures        were up 0.1% to $1,832.20.    
    "This new (U.S.) government will provide more economic
stimulus and also the policy of the U.S. Federal Reserve is
unlikely to become more hawkish going forward," said Commerzbank
analyst Eugen Weinberg.
    "Therefore we are likely to see continued support for gold
prices."
    U.S. President-elect Joe Biden outlined a $1.9 trillion
stimulus package proposal last week to jump-start the economy
and accelerate the distribution of COVID-19 vaccines.
            
    Fed Chair Jerome Powell also said there was no reason to
alter the central bank's highly accommodative stance with the
U.S. economy still far from its inflation and employment goals.
            
    Gold is considered a hedge against inflation and currency
debasement, likely to arise from large stimulus measures.
    However, Commerzbank's Weinberg said a stronger dollar,
economic optimism and concerns about Janet Yellen as the U.S.
Treasury secretary nominee, who might be restrictive on the
fiscal stimulus side, were weighing on gold prices.             
    The U.S. dollar        hit a four-week peak against rival
currencies, making gold expensive for holders of other
currencies.       
    Although U.S. inflation expectations have risen in
anticipation of more U.S. fiscal stimulus, gold has not been the
sole beneficiary - bond yields have risen and weighed on gold,
Phillip Futures said in a note. 
    U.S. Treasury yields scaled a 10-month high last week.      
   
    Among other precious metals, silver        gained 0.5% to
$24.86 an ounce, platinum        rose 0.4% to $1,078.10 and
palladium        was up 0.1% to $2,385.00.

 (Reporting by Asha Sistla and Sumita Layek in Bengaluru.
Editing by Mark Potter)
  

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PRECIOUS-Gold drifts higher from 1-1/2 month low despite buoyant dollar - Reuters
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