PRECIOUS-Gold gains as subdued U.S. dollar, bond yields lift appeal

* Dollar eases off two-week peak
* Palladium holds near record high
* Spot gold to retest resistance at $1,802/oz - technicals

(Recasts, adds chart, updates prices)
By Shreyansi Singh
May 6 (Reuters) - Gold prices rose on Thursday as a pullback
in the U.S. dollar and Treasury yields lifted demand for the
safe-haven metal, while investors awaited U.S. non-farm payrolls
data for April due later this week.
Spot gold XAU= was up 0.4% at $1,794.30 per ounce by 0650
GMT. U.S. gold futures GCv1 rose 0.6% to $1,794.20 per ounce.
"The U.S. Federal Reserve is continuing to push back here,
it is good for gold because it's keeping yields lower. I think
this will eventually lead to a weaker U.S. dollar," said Stephen
Innes, managing partner at SPI Asset Management.
"A test of $1,800 is expected sooner rather than later the
way this market is marching on to the beat of a very dovish
Fed."
Benchmark U.S. 10-year Treasury yields US10YT=RR slipped
below 1.6% and hovered close to a one-week low hit on Tuesday,
reducing the opportunity cost of holding non-interest bearing
gold. US/
The dollar index .DXY dipped 0.1%, moving further away
from a near two-week high hit on Wednesday. USD/
Focus now shifts to Friday's U.S. monthly jobs report, which
is expected to show non-farm-payrolls increased by 978,000 last
month. The U.S. economy may be growing more quickly and
unemployment falling faster than the core of Fed policymakers
projected in March, Fed Governor Michelle Bowman said on
Wednesday. However, Chicago Fed President Charles Evans reiterated his
worries about reaching the 2% inflation goal and said he
expected monetary policy to stay accommodative for some time.
Lower interest rates decrease the opportunity cost of
holding non-yielding bullion.
Spot gold is expected to retest resistance at $1,802 per
ounce, with a good chance of breaking above this level and
rising to $1,816, according to Reuters technical analyst Wang
Tao. TECH/C
Palladium XPD= rose 0.4% to $2,984.97 per ounce, after
scaling an all-time high of $3,017.18 on Tuesday on supply
shortfalls.
Silver XAG= was up 1% at $26.77 per ounce, while platinum
XPT= dipped 0.5% to $1,230.66.

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