* Powell sees no reason to alter Fed's accommodative stance
* Platinum falls as much as 4.4%, silver down 3.8%
* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa
By Shreyansi Singh
Jan 15 (Reuters) - Gold prices fell more than 1% on Friday and the metal was heading for a second straight weekly drop as the dollar continued its upturn, overshadowing bullion's appeal as an inflation hedge after the U.S. president-elect proposed a new $1.9 trillion stimulus package.
The dollar index was on track for its biggest weekly gain since October 2020, making bullion more expensive for holders of other currencies. USD/
"Bouts of dollar strength and the uptick in U.S. yields have triggered short-term corrections," said Standard Chartered (LON: STAN ) Analyst Suki Cooper.
"The gold market is caught between longer-term buying on the back of rising inflation expectations given stimulus measures, but selling as the dollar has bounced and concern over QE tapering materialised."
Benchmark 10-year Treasury yields US10YT=RR held close to near 10-month highs touched earlier in the week. USD/ US/
"The Biden administration should support a much more expansive spending agenda than before," said Tai Wong, head of base and precious metals derivatives trading at BMO.
"But it seems like the stubborn short-term resilience of the dollar and concern for even higher yields is triggering steady liquidation in gold."
U.S. President-elect Joe Biden on Thursday outlined a $1.9 trillion stimulus package proposal. Biden takes office next Wednesday. gold is considered a hedge against the inflation and currency debasement that can result from widespread stimulus, a recent jump in bond yields has challenged that status as it increases the opportunity cost of holding non-yielding bullion.
On the technical front, gold has solid support around $1,775, and a dip to that level could trigger buying again, said Michael Matousek, head trader at U.S. Global Investors.
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