PRECIOUS-Gold hits near 6-week low on firmer dollar, higher Treasury yields - Reuters

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    * Market was unprepared for stronger U.S. dollar - analyst
    * Silver dips as much as 4.2%
    * Fed's Clarida sees 'impressive' year ahead for U.S.
economy
    * Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa

 (Adds comment, details, updates prices)
    By Sumita Layek
    Jan 11 (Reuters) - Gold prices touched a near six-week low
on Monday, extending losses from the previous session, as a
stronger dollar and higher U.S. Treasury yields pressured the
non-yielding bullion.
    Spot gold        fell as much as 1.7% to $1,816.53 per
ounce, its lowest since Dec. 2, and was down 0.7% at $1,835.96
by 0259 GMT. Prices fell as much as 4.4% on Friday.
    U.S. gold futures        were flat at $1,835.60.
    "The glory days of gold are over," said Stephen Innes, chief
global market strategist at Axi.
    "Higher U.S. yields are starting to have quite a negative
effect on gold and the market continues to get stopped out of a
lot of positions, as they weren't prepared for these moves in
the U.S. dollar."
    The U.S. 10-year Treasury yield             held firm above
1%, helping the dollar        scale a near three-week peak
against rival currencies, making bullion expensive.             
    Higher bond yields increase the opportunity cost of holding
gold.
    Investors also took note of Federal Reserve Vice Chair
Richard Clarida's comments on Friday that the U.S. economy was
headed for an "impressive" year, helped by coronavirus vaccines
and potential for larger government spending.             
    U.S. President-elect Joe Biden on Friday hinted at more
direct pandemic relief to families, including $2,000 stimulus
checks after data showed the U.S. economy shed jobs for the
first time in eight months in December.             
            
    "If the Fed signals that they will increase interest rates
before 2023, then that will have a significantly negative impact
on gold," Innes said.
   Silver        fell 2.6% to $24.71 an ounce, after dropping as
much as 4.2% earlier in the session.
    Platinum        fell 2.7% to $1,036.14, while palladium
       shed 0.6% to $2,355.16.

 (Reporting by Sumita Layek in Bengaluru; Editing by
Ramakrishnan M.)
  

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