PRECIOUS-Gold drops on firmer U.S. yields, but set for best week in 4

* Gold set for biggest jump since week ended Feb. 12
* Gold to hold around $1,700 unless yields move
higher-analyst
* Silver on track for its best week since mid February
* Platinum on track to post best week in four

(Updates prices)
By Sumita Layek
March 12 (Reuters) - Gold prices retreated on Friday as
firmer U.S. bond yields and a strong dollar weighed on the
metal, but bullion was on course for its biggest weekly gain in
four.
Spot gold XAU= eased 0.7% to $1,709.46 per ounce by 0716
GMT. The metal's prices had slumped to a nine-month low on
Monday, but a pullback in Treasury yields helped spark a rebound
that has put gold on track for a weekly gain of 0.4%.
U.S. gold futures GCv1 fell 0.8% to $1,709.10.
"It's basically a function of elevated yields and although
yields aren't marching higher, the problem is they're not going
lower, and that presents a problem," said Stephen Innes, chief
global market strategist at financial services firm Axi.
"Gold's going to hold around $1,700 ... unless we break new
ground on higher yields."
Benchmark U.S. Treasury yields US10YT=RR climbed,
increasing the opportunity cost of holding gold, while the
dollar .DXY bounced back from a near one-week low. USD/
Investors are now awaiting the U.S. Federal Reserve meeting
next week for direction on its monetary policy.
President Joe Biden on Thursday signed his $1.9 trillion
stimulus bill into law and said he was working to speed COVID-19
vaccinations and move the country closer to normality by July
4. "The implementation of Biden's pandemic relief bills is
stoking fears of a massive supply of bonds hitting the market,
as well as rising inflation," ANZ analysts said in a note.
"The continued rollout of vaccines is also supporting the
labour market, thus diminishing support for safe-haven assets."
Silver XAG= eased 1.4% to $25.70 an ounce, but was on
track for its best week since mid-February with a 1.7% rise.
Palladium XPD= fell 0.9% to $2,324.10.
Platinum XPT= shed 0.8% to $1,185.85, but was set to post
its best week in four with a 4.8% gain.