* Gold's big picture still very constructive - analyst
* Fed officials see U.S. economy rebound on vaccinations
* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Updates prices)
By Sumita Layek
Jan 13 (Reuters) - Gold edged higher on Wednesday as the U.S. dollar and Treasury yields pulled back, and the prospect of massive U.S. fiscal stimulus boosted the metal's appeal as an inflation hedge.
"The big picture is it's still a very constructive year for gold. With real yields remaining rather negative and the dollar continuing its path lower as the year unfolds, gold remains 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 market of the dollar balances out."
Benchmark 10-year Treasury yields US10YT=RR fell from 10-month highs, dragging the dollar lower and making gold cheaper for other currency holders. US/ USD/
Also boosting gold was U.S. President-elect Joe Biden saying he would unveil on Thursday a plan to inject the virus-hit economy with "trillions" of dollars in relief measures. coronavirus infections rose to more than 91 million, with several countries enforcing stricter restrictions to curb the spread, while vaccination rates remained underwhelming. Federal Reserve officials expect a quick economic recovery if vaccinations gather pace, but that could leave markets guessing the outlook of the central bank's monetary policy. the U.S. economy is ticking along nicely, the Fed will look to act. The reality is its balance sheets are bloated and any improvement in the outlook will at least reduce its seamless efforts," said Michael McCarthy, chief market strategist at CMC (NS: CMC ) Markets, adding that bullion would face resistance at $1,890-$1,900 levels.
Loose central bank monetary policy adds pressure on government bond yields and benefits gold.
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