(Adds comments, details, updates prices)
* Gold's price action has consolidated- analyst
* Powell sees no reason to alter Fed's accommodative stance
* Platinum up over 4% so far this week
* Interactive graphic tracking global spread of coronavirus:
tmsnrt.rs/3mvcUoa
By Sumita Layek
Jan 15 (Reuters) - Gold rose on Friday as prospects of a
substantial U.S. pandemic relief package boosted the metal's
appeal as an inflation hedge, while the Federal Reserve's dovish
stance on monetary policy also supported prices.
Spot gold rose 0.3% to $1,851.14 per ounce by 0251
GMT, while U.S. gold futures were flat at $1,851.20.
"The stimulus is going to be bullish for asset markets and
with the Fed chair quashing any prospects of raising interest
rates or dialling down bond buying anytime soon, has given some
support to gold," said Jeffrey Halley, a senior market analyst
at OANDA.
U.S. President-elect Joe Biden unveiled a $1.9 trillion
stimulus package proposal on Thursday designed to jump-start the
economy and accelerate the distribution of coronavirus vaccines.
Powell on Thursday said there is no reason to alter the
central bank's highly accommodative stance with the U.S. economy
still far from its inflation and employment goals.
Easy central bank monetary policy adds pressure on
government bond yields and benefits gold, which is also
considered a hedge against inflation.
But the price action in gold has consolidated and it is not
showing any signs of trying to break out to the upside, Halley
said, adding U.S. yields will move up again and put gold under
pressure.
Benchmark 10-year Treasury yields eased after
touching a 10-month high earlier in the week, while Asian shares
rose.
"Gold's upside looks constrained amid rising yield and
buoyant risky assets. However, a weaker U.S. dollar, stimulus
expectations and depressed real interest rates should remain
supportive," ANZ analysts said in a note.
Silver rose 0.3% to $25.59 an ounce. Platinum
eased 0.8% to $1,108.92, but was up over 4% so far this week,
while palladium held steady at $2,408.06.
(Reporting by Sumita Layek in Bengaluru; Editing by
Ramakrishnan M.)
.Source
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