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

* Gold's big picture still very constructive - analyst
* Fed officials see U.S. economy rebound on vaccinations
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

(Updates prices)
By Sumita Layek
Jan 13 (Reuters) - Gold edged higher on Wednesday as the
U.S. dollar and Treasury yields pulled back, and the prospect of
massive U.S. fiscal stimulus boosted the metal's appeal as an
inflation hedge.
Spot gold XAU= rose 0.2% to $1,859.20 per ounce by 0753
GMT, while U.S. gold futures GCv1 gained 0.8% to $1,858.
"The big picture is it's still a very constructive year for
gold. With real yields remaining rather negative and the dollar
continuing its path lower as the year unfolds, gold remains an
attractive proposition," said IG Market analyst Kyle Rodda.
"But I wouldn't be surprised if we see dips or a short-term
downtrend in gold as the market of the dollar balances out."
Benchmark 10-year Treasury yields US10YT=RR fell from
10-month highs, dragging the dollar lower and making gold
cheaper for other currency holders. US/ USD/
Also boosting gold was U.S. President-elect Joe Biden saying
he would unveil on Thursday a plan to inject the virus-hit
economy with "trillions" of dollars in relief measures.
Global coronavirus infections rose to more than 91 million,
with several countries enforcing stricter restrictions to curb
the spread, while vaccination rates remained underwhelming.
U.S. Federal Reserve officials expect a quick economic
recovery if vaccinations gather pace, but that could leave
markets guessing the outlook of the central bank's monetary
policy. "If the U.S. economy is ticking along nicely, the Fed will
look to act. The reality is its balance sheets are bloated and
any improvement in the outlook will at least reduce its seamless
efforts," said Michael McCarthy, chief market strategist at CMC
Markets, adding that bullion would face resistance at
$1,890-$1,900 levels.
Loose central bank monetary policy adds pressure on
government bond yields and benefits gold.
Among other precious metals, silver XAG= dipped 0.2% to
$25.52 an ounce, platinum XPT= rose 0.3% to $1,079.34 and
palladium XPD= climbed 0.2% to $2,395.79.