Gold inches lower on firmer dollar, U.S. stimulus worries

Spot gold was down 0.1% to $1,853.99 per ounce

  
A gold bar is pictured on display at Korea Gold Exchange in Seoul, South Korea, August 6, 2020. Image used for illustrative purpose.

A gold bar is pictured on display at Korea Gold Exchange in Seoul, South Korea, August 6, 2020. Image used for illustrative purpose.

REUTERS/Kim Hong-Ji

Gold prices eased on Tuesday, as a stronger dollar and concerns about the size of U.S. coronavirus relief package dented the metal's appeal.

FUNDAMENTALS

* Spot gold was down 0.1% to $1,853.99 per ounce by 0054 GMT. U.S. gold futures eased 0.1% to $1,852.90.

* The dollar firmed against an index of rivals, making gold expensive for holders of other currencies. 

* U.S. President Joe Biden's $1.9 trillion pandemic relief proposal has been met with objections from Republicans, who have called the proposal too expensive and pushed for a smaller plan targeting vaccine distribution.

* Gold is considered a hedge against inflation, likely from widespread stimulus.

* Janet Yellen won overwhelming Senate confirmation as the first female U.S. Treasury secretary on Monday and will play a key role in working with Congress on Biden's coronavirus stimulus plans. 

* The U.S. Federal Reserve's two-day policy meeting is scheduled to begin later in the day.

* Moderna Inc said on Monday it believes its COVID-19 vaccine protects against new variants found in Britain and South Africa, as global coronavirus cases rose to more than 99 million. 

* The U.S. House of Representatives on Monday delivered to the Senate a charge accusing former President Donald Trump with inciting insurrection in a speech to his supporters before the deadly attack on the Capitol. 

* Silver was flat at $25.30 an ounce, platinum lost 0.6% to $1,091.40, and palladium  fell 0.3% to $2,327.16.

DATA/EVENTS AHEAD (GMT) 0700 UK Claimant Count Unemployment Dec 0700 UK ILO Unemployment Rate Nov 1200 Brazil IPCA-15 Mid-Month CPI Jan 1500 U.S. Consumer Confidence Jan 1600 Russia Industrial Output Dec -- U.S. U.S. Federal Reserve's Federal Open Market Committee starts its two-day meeting on interest rates

(Reporting by Sumita Layek in Bengaluru; Editing by Subhranshu Sahu) ((Sumita.Layek@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 8061822693; Reuters Messaging: Sumita.Layek.thomsonreuters.com@reuters.net))

More From Commodities