* Yields will dictate gold movement - strategist
* ECB monetary policy decision due at 1245 GMT
* Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa
(Adds comment, details and updates prices)
By Sumita Layek
Jan 21 (Reuters) - Gold rose to a two-week high on Thursday
as the dollar eased on hopes of further stimulus under the Joe
Biden administration, although bullion's gains were limited by
some profit booking.
Spot gold was up 0.1% at $1,872.25 per ounce by 0308
GMT, after hitting its highest since Jan. 8 at $1,872.35 earlier
in the session. Bullion had gained 1.7% on Wednesday.
U.S. gold futures climbed 0.3% to $1,871.70.
"The path of least resistance is lower. There is a lot of
stimulus coming down and that's likely to boost inflation
expectations and growth," said DailyFX currency strategist Ilya
Spivak.
But, in that scenario, the Federal Reserve will look to hold
back on policy support and probably start thinking about
unwinding current policy measures, which will boost the dollar
and undermine the value of gold, he added.
U.S. President Joe Biden's $1.9 trillion stimulus plan will
be in focus as he gears up to jump-start his government's
response to the COVID-19 pandemic, which has claimed more than
400,000 lives and upended the world's largest economy.
Bullion is considered a hedge against inflation that can
result from stimulus measures.
The dollar nursed losses against rival currencies and
the benchmark 10-year U.S. Treasury yields held below the
10-month peak scaled last week.
"I suspect Treasury yields will dictate the direction of
travel for the yellow metal and the rally could extend if
further inflation expectations kick in," Stephen Innes, chief
global market strategist at Axi, said in a note.
Market participants are also keeping a close tab on the
European Central Bank monetary policy decision due at 1245
GMT.
Silver rose 0.3% to $25.89 an ounce. Platinum
eased 0.4% to $1,105.05, while palladium gained 0.5% to
$2,382.88.
(Reporting by Sumita Layek in Bengaluru; Editing by Subhranshu
Sahu)
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