Gold Price Analysis – PRECIOUS-Gold rises on weaker U.S. Treasury yields, dollar

    March 10 (Reuters) - Gold prices inched higher on Wednesday,
adding to a 2% jump in the previous session after a retreat in
U.S. Treasury yields and the dollar lifted the metal's appeal.
       
    FUNDAMENTALS
    * Spot gold        was up 0.1% to $1,716.51 per ounce by
0041 GMT, after hitting its lowest since June 5 at $1,676.10 on
Monday. U.S. gold futures        eased 0.2% to $1,714.20.
    * U.S. Treasury yields dropped overnight, pulling back from
a recent 13-month high on the benchmark note, as investors
bought back bonds in a selloff that market participants have
deemed overextended.             
    * Lower yields reduce the opportunity cost of holding the
non-interest paying gold.
    * The dollar on Tuesday slipped from its 3-1/2-month high as
U.S. yields stabilized ahead of key inflation data and Treasury
auctions this week.             
    * The U.S. House of Representatives voted on Tuesday to
advance President Joe Biden's $1.9 trillion COVID-19 relief
bill, clearing the way for the measure to be considered on
Wednesday, when it is expected to pass.             
    * The world economy is set to rebound this year with 5.6%
growth and expand 4.0% next year, the Organisation for Economic
Cooperation and Development said in its interim economic
outlook.             
    * Holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust       fell 0.1% to
1,061.98 tonnes on Tuesday from 1,063.43 tonnes a day earlier.
         
    * The global platinum market will be roughly balanced this
year after a record undersupply of almost a million ounces in
2020, but more deficits loom as demand picks up, the World
Platinum Investment Council (WPIC) said.             
    * Silver        rose 0.2% to $25.96 an ounce. Palladium
       was little changed at $2,296.70. Platinum        was
steady at $1,169.19.    
    
DATA/EVENTS (GMT)
0130  China PPI, CPI YY  Feb
1330  US    CPI MM, SA   Feb

 (Reporting by Sumita Layek in Bengaluru; Editing by Rashmi
Aich)