PRECIOUS-Gold inches lower as strong equities dim appeal

* Platinum scales more than two-week peak
* S&P 500 and the Dow hit record highs
* Dollar hits over 1-week trough

(Adds comment, updates prices)
By Shreyansi Singh
April 5 (Reuters) - Gold prices eased on Monday as hopes for
a swift economic recovery following strong U.S. jobs and
services sector data bolstered gains on Wall Street, although a
softer dollar limited the precious metal's decline.
Spot gold XAU= fell 0.1% to $1,727.64 per ounce as of 2:34
p.m EDT (1834 GMT). U.S. gold futures GCv1 settled little
changed at $1,728.80.
"There is broad optimism for the U.S. economic recovery... A
strong U.S. stock market is technically a difficult environment
for gold," said Edward Moya, senior market analyst at OANDA.
The S&P 500 and the Dow hit record highs on data that showed
the U.S. economy created the most jobs in seven months in March.
Meanwhile, a measure of services industry activity surged to a
record high. .N The dollar .DXY hit a more than one-week low, making
bullion less expensive for holders of other currencies and
limiting gold's losses. USD/
Meanwhile, U.S. President Joe Biden's announcement of a
long-awaited $2 trillion-plus job plan last week has fueled
concerns over inflation. "Stimulus is inflationary and potentially bullish for gold
in the longer term, and also silver, but on the shorter term
traders are focusing on the positive economic aspects of the
stimulus package," said Kitco Metals senior analyst Jim Wyckoff.
added.
On investors' radar were minutes from the Federal Reserve's
last policy meeting on Wednesday. "So far, the Fed is quite committed to keep interest rates
unchanged until the end of 2023, but if inflation increases ...
then they will achieve their long term objective sooner than
expected," said Jigar Trivedi, commodities analyst at
Mumbai-based broker Anand Rathi Shares.
"If that happens, we are going to see an increase in
interest rates and that will be negative for gold prices."
Silver XAG= dropped 1% to $24.73 per ounce, and palladium
XPD= fell 0.3% to $2,658.25.
Platinum XPT= eased 0.3% to $1,206.28 per ounce after
hitting its highest level since March 18 earlier in the session
at $1,218.