* Equities recover after sell-off
* Focus on U.S. non-farm payrolls data on Friday
* Dollar hovers near one-year high
Oct 5 (Reuters) – Gold prices fell as much as 1.2% on Tuesday, as firmer U.S. Treasury yields and a stronger dollar dented the safe-haven metal’s appeal, with investors awaiting key U.S. non-farm payrolls data due later this week.
Spot gold was down 0.5% at $1,760.30 per ounce by 1:35 p.m. EDT (1735 GMT), and was set for its first dip in four sessions. U.S. gold futures settled down 0.4% at $1,760.9.
Upward moves in the dollar and bond yields, after the light pullback seen over the last several days and a rebound in the equity market, are driving gold down, said David Meger, director of metals trading at High Ridge Futures.
The U.S. dollar firmed near last week’s one-year high against major rivals, making gold more expensive for other currency holders.
The benchmark 10-year yield, which last week rose to its highest level since June at 1.5670%, was last up at 1.5223%.
U.S. non-farm payrolls data due on Friday is expected to show continued improvement in the labor market, which could prompt the U.S. Federal Reserve to begin tapering its monetary stimulus before year-end.
Reduced stimulus and higher interest rates lift bond yields, weighing on gold as it raises the opportunity cost of holding non-interest-bearing bullion.
“While gold could still move higher, a significant move would require a break above technical resistance, especially the 21-day moving average,” said Saxo Bank analyst Ole Hansen.
Meanwhile, Wall Street’s main indexes rebounded as growth stocks bounced from a sharp selloff.
“The U.S. dollar index is also firmer today and that’s a negative for the metals markets. Still, the global equities markets remain wobbly and that should limit the downside in the safe-haven metals,” said Jim Wyckoff, senior analyst with Kitco Metals, in a note.
Elsewhere, spot silver slipped 0.3% to $22.59 per ounce, platinum dropped 0.5% to $962.59, while palladium firmed 0.2% to $1,909.33. (Reporting by Bharat Govind Gautam in Bengaluru; Editing by Uttaresh.V, Andrea Ricci and Shailesh Kuber)