PRECIOUS-Gold under pressure as U.S. yields, dollar firm

* European Central Bank policy meeting due on Thursday
* More platinum deficits loom after record 2020 undersupply
- WPIC
* Platinum prices likely to reach $1,300/oz over 12 months -
UBS

(Updates prices)
By Shreyansi Singh
March 10 (Reuters) - Gold eased on Wednesday after
registering its biggest jump in two months in the last session,
as higher U.S. Treasury yields and a stronger dollar remained a
stumbling block for bullion.
Spot gold XAU= was down 0.2% at $1,711.21 per ounce by
1207 GMT after rising more than 2% on Tuesday. U.S. gold futures
GCv1 fell 0.5% to $1,709.20.
U.S. yields regained momentum on Wednesday, raising the
opportunity cost of holding bullion, while the dollar also
gained. USD/ US/
"Gold prices are likely to remain under pressure, while
concerns about inflation are front of mind for the market," said
CMC Markets UK's chief market analyst, Michael Hewson, adding a
stronger dollar could be a further drag on bullion prices over
the next few days.
The U.S. House of Representatives cleared the way for the
$1.9 trillion U.S. COVID-19 relief bill to be considered on
Wednesday, when it is expected to be approved. Although gold is widely considered a hedge against higher
inflation anticipated to be fuelled by stimulus measures, higher
yields have challenged that status this year.
Policymakers were divided on a large-scale market
intervention to counter a rise in yields ahead of a European
Central Bank meeting on Thursday. The U.S. Federal Reserve "would have to flood markets even
more, blue in the balance sheet further to keep yields at a low
level, but that would here in the current environment only fuel
more inflation expectations," said Quantitative Commodity
Research analyst Peter Fertig.
Silver XAG= fell 0.9% to $25.67 an ounce. Palladium XPD=
lost 0.5% to $2,285.92, while platinum XPT= was down 0.4% at
$1,163.98.
More platinum deficits loom this year after a record
undersupply of almost a million ounces in 2020, the World
Platinum Investment Council said. Analysts at Swiss bank UBS forecast platinum prices reaching
$1,300 over the next 12 months, driven by high investment demand
and strained supply.