PRECIOUS-Gold gains as dollar weakens on U.S. stimulus outlook

* Gold at $2,000/oz is still achievable - economist
* U.S. Treasury yields inch lower
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

(Updates prices)
By Sumita Layek
Jan 20 (Reuters) - Gold prices rose on Wednesday as the
dollar weakened after U.S. Treasury Secretary nominee Janet
Yellen underscored the need for a huge stimulus to help the
economy recover from the coronavirus jolt, bolstering bullion's
appeal as an inflation hedge.
Spot gold XAU= gained 0.8% to $1,853.80 per ounce by 0719
GMT. U.S. gold futures GCv1 added 0.7% to $1,852.80.
Yellen at her confirmation hearing on Tuesday urged
lawmakers for large coronavirus relief spending, adding that the
benefits outweigh the expenses of a higher debt burden.
"With more rounds of fiscal stimulus expected under the Joe
Biden administration, further championed by Yellen's call to
"act big", such measures could well pump up U.S. inflationary
pressures while boosting gold prices in tandem," said FXTM
market analyst Han Tan.
Gold's gains, however, have been curbed by elevated U.S.
yields, but "should the greenback unwind more of its recent
gains, that could clear the path for more bullion upside," Tan
added.
The dollar .DXY eased further from a four-week high hit
earlier in the week, while most U.S. Treasury yields fell after
Yellen's call to repeal large corporations tax cuts enacted in
2017. USD/ US/
Lower yields reduce the opportunity cost of holding
non-yielding bullion.
Biden's $1.9 trillion stimulus package plan will be in focus
after he is sworn into office on Wednesday, while emphasis will
also be on the pace of vaccine distribution against COVID-19,
which has claimed 400,000 deaths in the
country. Gold at $2,000 is still achievable "probably by the mid of
second quarter, when a good amount of people get inoculated and
there's so much cash in the system with demand almost coming
back to normal," said Howie Lee, an economist at OCBC Bank.
"People will start looking at inflation very closely then."
Silver XAG= climbed 1.1% to $25.47 an ounce. Platinum
XPT= rose 1.3% to $1,097.10 and palladium XPD= gained 0.7%
to $2,368.21.