PRECIOUS-Gold rebounds as dollar, U.S. bond yields drift lower

* U.S. bond yields ease off near 14-month highs
* Gold upside looks limited amid rising yields, risk assets
-ANZ
* Palladium up about 12% for week, biggest rise since early
Nov.
2020

(Adds analyst comment, details, updates prices)
By Asha Sistla
March 19 (Reuters) - Gold prices bounced back on Friday as
the dollar turned negative and U.S. 10-year Treasury yields
slipped from their highest in over a year, setting bullion on
track for a second straight weekly rise.
Spot gold XAU= gained 0.4% to $1,742.80 per ounce by 0843
GMT, after falling as much as 0.5% earlier in the session. U.S.
gold futures GCv1 were up 0.6% at $1,742.30.
"The yields have retraced back and that's why gold is moving
up. The U.S. and European 10-year benchmarks have cooled off
so...that has led to buying interest in gold," said Kunal Shah,
head of research at Nirmal Bang Commodities in Mumbai.
Despite the jump in gold prices on Friday, the outlook for
the safe-haven metal remained bearish as economies gradually
recover from the pandemic-induced slump.
"To see gold back above $1,800, we would need to see a major
corporate black swan event (Lehman Brothers) and/or reversal of
demand for dollar and/or another large stimulus package being
proposed in the U.S.," said Michael Langford, director at
corporate advisory AirGuide.
The U.S. Federal Reserve this week pledged to press on with
aggressive monetary stimulus and projected the strongest U.S
economic growth in nearly 40 years, sending U.S. 10-year yields
to near 14-month highs on Thursday. US/
"Gold's upside looks limited by rising yields and buoyant
risky assets... Talks around tapering asset purchases will be
the key headwind later this year," ANZ analysts said in a note.
Palladium XPD= fell 0.5% to $2,667.85, after rising as
much as 7.3% in the previous session on a cut in output
estimates by top producer Russia's Nornickel Nickel GMKN.MM
fuelled supply concerns. "Tighter supply and the revival of the auto sector still
bode well for Platinum Group Metals prices," ANZ said.
The auto-catalyst metal was on track for a near 12% weekly
jump, the biggest since early November 2020.
Silver XAG= was up 0.4% to $26.15 an ounce and platinum
XPT= was flat at $1,206.67.