SINGAPORE: Gold prices inched lower in Asian trade on Thursday as US Treasury yields rebounded on bets of a sizeable stimulus from incoming US President Joe Biden, although concerns about rising inflation limited bullion's losses.

Spot gold fell 0.2% to $1,840.55 per ounce by 0729 GMT, while US gold futures slipped 0.8% to $1,840.10.

Reports that Biden could announce a $2 trillion coronavirus relief aid plan later in the day, pushed benchmark 10-year Treasury yields near ten-month highs, and helped lift the dollar.

"Fiscal stimulus will help boost economic recovery, leading to rising real interest rates as well as bring up Federal Reserve's tapering hopes; on the flip side, it'll also increase the inflation outlook," said DailyFX strategist Margaret Yang.

So, gold will be struggling around these price levels as the stimulus will have both positive and negative impacts on it, she added.

Investors will also be focused on further clues on the US monetary policy outlook when Fed Chair Jerome Powell participates in a virtual event, due at 1730 GMT.

"Gold prices can continue to lift, but we also acknowledge the bear case scenario, where coronavirus vaccines roll out quickly and successfully lead to the pandemic coming under control through the year," said Lachlan Shaw, National Australia Bank's head of commodity research.

That can prompt the Fed to start contemplating the policy reversal a bit sooner, he added.