2021.01.2509:41:00UTC+00Gold Holds Steady On Weaker Dollar

Gold prices were little changed on Monday as the dollar weakened amid U.S. stimulus optimism and ahead of the Federal Reserve's monetary policy meeting this week.

Spot gold was virtually unchanged at $1,855.87 per ounce, after having declined 0.9 percent in the previous session. U.S. gold futures were marginally lower at $1,855.35.

Amid bitter political differences, lawmakers in Washington are getting to work on the $1.9-trillion stimulus proposal from the new president.

According to the Financial Times, Joe Biden faces a narrow window to clinch bipartisan support for his $1.9tn stimulus plan, after congressional Democrats said they wanted a deal before the impeachment trial against Donald Trump.

Senate Republicans say Americans may have to wait "a couple of months" until they receive a $1,400 stimulus check.

Investors, however, expect some additional spending to materialize eventually that will help lift global economic growth.

The U.S. Federal Reserve meets on Wednesday amid bets that officials will likely put off any changes in their bond-buying program until 2022.

Rising Covid-19 cases and growing frustration over vaccination availability also supported the precious metal.

Italian Prime Minister Giuseppe Conte described delays in consignments by Pfizer Inc. and AstraZeneca Plc as "unacceptable."

Elsewhere, U.K. health minister Matt Hancock warned that coronavirus vaccines may be less effective against new variants of the disease.