Silver Spot – PRECIOUS-Gold slips as dollar strength offsets Europe lockdown worries

 (Updates prices)
    * Dollar hits fresh four-month high
    * Silver drops to over two-month low
    * European stocks slip in early trading

    By Brijesh Patel
    March 25 (Reuters) - Gold prices eased on Thursday as a
stronger U.S. dollar overshadowed support from lower bond yields
and worries that lockdowns across Europe would take a toll on
the pace of economic recovery.
    The dollar index        rose to a four-month high against
its rivals, making gold more expensive for holders of other
currencies.       
    "We are in a rough patch in terms of risk appetite in
general; that could add some support to gold market, but right
now the focus is on the dollar," said Saxo Bank analyst Ole
Hansen.
    "Gold prices need to break above $1,765/oz level to attract
renewed momentum."
    Spot gold        was down 0.3% at $1,728.58 per ounce by
1156 GMT. U.S. gold futures        were down 0.3% at $1,728.30
per ounce. 
    Sentiment in wider financial markets remained weak as
investors grew wary about the economic outlook following a new
round of coronavirus restrictions in the euro zone and potential
U.S. tax hikes.                  
    "With virus cases rising and lockdowns in Europe, the road
to recovery might take a little longer, which is leading to
lower yields," Hansen said.
    Offering some respite to gold, U.S. Treasury yields dipped,
with the market appearing to stabilise after benchmark yields
reached one-year highs last week.      
    Lower yields reduce the opportunity cost of holding
non-interest bearing gold.
    "Bullion could see further upside traction if U.S. bond
yields stay sluggish, especially in this risk-averse environment
with U.S.-Sino tension starting to bubble again," said Stephen
Innes, chief global market strategist at financial services firm
Axi, in a note.
    Among other precious metals, silver        dropped 1.6% to
$24.69 per ounce, having fallen to a more than two-month low
earlier in the session. 
    Palladium        rose 0.3% to $2,642.94 per ounce, while
platinum        slipped 0.5% to $1,161.33.    
    

 (Reporting by Brijesh Patel in Bengaluru; Editing by Amy Caren
Daniel and Bernadette Baum)