* Gold's big picture still very constructive - analyst
* Fed officials see U.S economy rebound on vaccinations
* Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa
(Adds comments, details, and updates prices)
By Sumita Layek
Jan 13 (Reuters) - Gold prices edged up on Wednesday as the
dollar pulled back and the U.S. Treasury yields traded lower,
while the outlook of a massive U.S. fiscal stimulus further
boosted the metal's appeal as an inflation hedge.
Spot gold rose 0.2% to $1,858.56 per ounce by 0255
GMT, while U.S. gold futures gained 0.9% to $1,860.10.
"The big picture is it's still a very constructive year for
gold. With real yields remaining rather negative and as the
dollar continues its path lower as the year unfolds, making gold
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 U.S. dollar balances out."
Benchmark 10-year Treasury yields fell from
10-month highs, dragging the dollar lower and making gold
cheaper for other unit holders.
Further boosting gold was U.S. President-elect Joe Biden's
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 Asian and European countries enforcing stricter
restrictions to curb the spread of the virus, while vaccination
rates remained underwhelming.
Several U.S. Federal Reserve officials see the economy
recovering strongly if the vaccinations gather pace, but that
also invokes questions about the outlook of central bank's
monetary policy.
"Stimulus from Biden should increase inflation expectations
and should be good for gold in the short term, but it does rely
on the Fed still remaining accommodative, keeping long term
rates low," Rodda said.
Silver dipped 0.2% to $25.51 an ounce. Platinum
rose 0.3% to $1,079.21, while palladium eased 0.2%
to $2,388.78.
(Reporting by Sumita Layek in Bengaluru; Editing by
Ramakrishnan M. and Sherry Jacob-Phillips)
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