(Bloomberg) -- Gold steadied as investors awaited commentary from Treasury Secretary nominee Janet Yellen on the dollar and stimulus when she testifies on Capitol Hill a day ahead of Joe Biden’s inauguration as president.Yellen’s Senate confirmation hearing is likely to feature foreign-exchange policy, and will also serve as the first congressional forum where lawmakers will vet Biden’s $1.9 trillion Covid-19 relief plan, parts of which have already drawn opposition. Earlier, the Wall Street Journal reported Yellen is expected to affirm the U.S.’s commitment to market-determined exchange rates.“No doubt Yellen will lean to the dovish side when it comes to any comments on fiscal policy,” said John Feeney, business development manager at Guardian Vaults, a Sydney-based bullion dealer. “Depending on how convincing that will be, we could see gold react positively, but the question would be how much the market has priced that in already.”Bullion has fallen about 3% this year as benchmark Treasury yields and the greenback climbed on forecasts that coronavirus vaccines and stimulus packages will aid the economic recovery. In Asian trade on Tuesday, a gauge of the currency slipped after climbing over the past two weeks.“Gold, along with other commodities, are all in a wait-and-watch mode for more clarity in possible policy changes under the Biden administration,” said Madhavi Mehta, an analyst at Kotak Securities Ltd. “A bigger fiscal stimulus package and a market driven approach on the U.S. dollar has been factored in but there are lots of uncertain factors such as tax hikes and U.S.-China relations. Meanwhile, there is also wariness about the impact of higher stimulus and the improving U.S. economic outlook on inflation as well as interest rate hike expectations.”Spot gold declined 0.1% to $1,839.70 an ounce at 5:01 a.m. in London, after rising 0.7% on Monday. Silver fell, while palladium and platinum gained. The Bloomberg Dollar Spot Index dropped 0.1%.Traders are also monitoring President Donald Trump’s last full day in office, when he may issue a slew of pardons. Biden’s swearing-in at the U.S. Capitol on Wednesday will come amid an unprecedented level of security given the still-simmering threats of violence in Washington.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.