Gold inches lower on firmer dollar, US stimulus worries

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

FUNDAMENTALS

Spot gold was down 0.1% to $1,853.99 per ounce by 0054 GMT. US 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.

US 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 US Treasury secretary on Monday and will play a key role in working with Congress on Biden's coronavirus stimulus plans.

The US 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 US 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.