PRECIOUS-Gold slips as Wall Street gains sour appeal

(New throughout, updates prices, market activity and comments)
* Silver down more than 2%
* Gold needs to hold above $1,750/OZ to attract buyers
-analyst

By Nakul Iyer
March 22 (Reuters) - Gold slipped 1% on Monday, with a dip
in the dollar and U.S. Treasury yields offering little respite
as U.S. equities gained, which dulled bullion's appeal.
Spot gold XAU= was down 0.3% at $1,738.93 per ounce by
1:41 P.M EDT (1741 GMT).
U.S. gold futures GCv1 settled 0.2% down at $1,738.1.
"Gold should be higher yet it's not. That really speaks to a
weak market if normal correlations (like a weaker dollar) are
not holding up," said David Madden, analyst at CMC Markets UK,
adding gold could slip further if the dollar and yields advance.
Gold fell as much as 1% during the session as investors
flocked to the dollar and government bonds, spooked by Turkey's
decision to replace its central bank head with a critic of high
interest rates. "If (Turkish) citizens are concerned that the lira is weak,
they'd look to buy U.S. dollars or gold, but this is where the
fear comes - that capital controls will stop money coming into
the country ...it could be tricky for people to get their hands
on dollars, and in turn gold, in the next few weeks," CMC's
Madden said. Gains on Wall Street also pressured gold. .N US/
"Traders want to see gold above $1,750 and hold there before
you start to see new money coming into this trade," said Bob
Haberkorn, senior market strategist, RJO Futures, adding the U.S
Federal Reserve's low-interest rate policy could boost prices by
year-end.
Elsewhere, palladium XPD= dropped 1.1% to $2,606.24 per
ounce and platinum XPT= shed 1.1% to $1,182.87.
Russia's Nornickel, a major palladium producer, shut a
metallurgical processing facility in Russia's border region with
Norway and Finland to curb emissions. The issues at Nornickel could "push the palladium market
into a wider deficit this year which, combined with strong
demand from tightening emissions standards, could keep prices
elevated," Heraeus Precious Metals said in a note.
Silver XAG= fell 2% to $25.72 an ounce.