PRECIOUS-Gold firms as Democrat-led U.S. Senate boosts stimulus hopes

(Recasts, adds comments, and updates prices)
* U.S. Treasury yields hold above 1%
* Dollar is going to depreciate all through 2021- analyst
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

By Sumita Layek
Jan 7 (Reuters) - Gold prices rose on Thursday as a Democrat
sweep of Georgia's Senate runoffs boosted expectations of
additional U.S. stimulus, although soaring Treasury yields held
back bullion below a two-month high scaled in the previous
session.
Spot gold XAU= advanced 0.4% to $1,925.90 per ounce by
0652 GMT. U.S. gold futures GCv1 climbed 1% to $1,927.10.
Prices had declined as much as 2.5% after scaling a high
since Nov. 9 on Wednesday, as 10-year U.S. Treasury yields
US10YT=RR jumped above 1% for the first time since March.
"We're just seeing a bit of a corrective move after gold
bottomed out from the overall sell-off on Wednesday" as markets
consider the economic and asset impact of further stimulus, said
DailyFX currency strategist Ilya Spivak.
U.S. inflation expectations rose in anticipation of more
stimulus after Democrats gained control of the Senate with
victories in Georgia's two runoff elections. Many investors view non-yielding bullion as a hedge against
inflation and currency debasement that they fear could result
from large stimulus measures.
Capping gold's advance, yields remained firm above 1% and
helped dollar rebound from a multi-year low. A stronger dollar
makes gold expensive for holders of other currencies.
US/ USD/
Jeffrey Halley, a senior market analyst at OANDA, said,
"U.S. yields would have to move quite a bit higher to derail the
dollar bear market."
"The dollar is going to depreciate all through 2021, U.S.
yields may move slightly higher from here, but they're not going
to run away to the top, in that environment gold should
flourish."
Concerns briefly rose after supporters of outgoing President
Donald Trump stormed the U.S. Capitol in a bid to overturn his
election defeat. Minutes from the Federal Reserve's December meeting showed
policymakers were nearly unanimous in their decision to leave
its bond-buying programme unchanged. Silver XAG= shed 0.1% to $27.27 an ounce. Platinum XPT=
rose 0.2% to $1,104.13, while palladium XPD= climbed 0.7% to
$2,454.50.