Jan 20 (Reuters) - Gold prices edged higher on Wednesday as
the dollar weakened after U.S. Treasury Secretary nominee Janet
Yellen urged lawmakers for more coronavirus relief spending,
lifting bullion's appeal as an inflation hedge.
FUNDAMENTALS
* Spot gold rose 0.2% to $1,842.02 per ounce by 0042
GMT. U.S. gold futures gained 0.1% to $1,842.50.
* Yellen on Tuesday argued that the economic benefits of a
large stimulus will far outweigh the risks of a higher debt
burden.
* Gold is considered a hedge against inflation and currency
debasement that can result from widespread stimulus.
* The dollar dropped for a second straight session on
Tuesday, while most U.S. Treasury yields fell after Yellen
commented in her hearing that tax cuts enacted in 2017 for large
corporations should be repealed.
* President-elect Joe Biden will be sworn into office on
Wednesday and investors will be focused on his $1.9 trillion
stimulus package proposal to boost the economy and speed up the
distribution of vaccines.
* The United States surpassed 400,000 deaths from the
COVID-19 on Tuesday, while some European countries are drawing
fewer than the approved six doses from Pfizer and BioNTech's
vaccine vials.
* Bank of England chief economist Andy Haldane said on
Tuesday that he expected Britain's economy to begin to recover
"at a rate of knots" from the second quarter of this year, as
vaccines against COVID-19 are rolled out.
* SPDR Gold Trust , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.3% to 1,174.13
tonnes on Tuesday from 1,177.63 tonnes on Friday.
* Silver climbed 0.3% to $25.26 an ounce. Platinum
rose 0.6% to $1,089.33, while palladium gained
0.1% to $2,354.75.
DATA/EVENTS (GMT)
0700 UK CPI YY Dec
1000 EU HICP Final MM, YY Dec
Bank of Japan holds Monetary Policy Meeting to Jan. 21
(Reporting by Sumita Layek in Bengaluru, Editing by Sherry
Jacob-Phillips)
.Source
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