PRECIOUS-Gold gains as U.S. stimulus prospects offset firm dollar

* Dollar index hits four-week high
* Interactive graphic tracking global spread of coronavirus:
https://tmsnrt.rs/3mvcUoa

(Updates prices)
By Sumita Layek
Jan 18 (Reuters) - Gold prices rose on Monday, after hitting
a 1-1/2-month low earlier in the session, as prospects of a
massive U.S. coronavirus relief aid outweighed a stronger dollar
and lifted bullion's appeal as an inflation hedge.
Spot gold XAU= rose 0.5% to $1,836.29 per ounce by 0728
GMT, after falling to $1,809.90, its lowest since Dec. 2.
U.S. gold futures GCv1 gained 0.4% to $1,836.80.
"The gold market remains relatively supported at these
levels, as the current run of the U.S. dollar has more to do
with safe haven, rather than a discernible pivot to a stronger
dollar," said Stephen Innes, chief global market strategist at
Axi.
"The U.S. stimulus (plan) is quite large, we're going to get
around $1.9 trillion or $1.5 trillion, and either scenario is
good for gold," Innes said.
The U.S. dollar .DXY hit a four-week peak against rival
currencies, making gold expensive for holders of other
currencies. USD/
U.S. President-elect Joe Biden last week unveiled a $1.9
trillion stimulus package proposal to jump-start the economy and
said he wants 100 million COVID-19 vaccine shots during his
first 100 days in office. Gold is considered a hedge against inflation and currency
debasement, likely from large stimulus.
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.
"Our market view remain bullish for the long term as the
U.S. dollar is expected to remain structurally weak in the long
term."
The U.S. Treasury yields scaled a 10-month high last week.
US/
Among other precious metals, silver XAG= rose 1.2% to
$25.03 an ounce. Platinum XPT= rose 0.7% to $1,081.10, while
palladium XPD= gained 0.3% to $2,389.82.