PRECIOUS-Gold on back foot as firm U.S. dollar weighs

(Adds analyst comment, updates prices)
* Further bond sell-off could push gold below $1,700/oz
-analyst
* Markets eye Biden's infrastructure spending plans on
Wednesday

By Asha Sistla
March 29 (Reuters) - Gold prices fell on Monday as the U.S.
dollar and global share markets firmed on the back of improving
economic outlook, with elevated bond yields putting further
pressure on the metal.
Spot gold XAU= fell 0.3% to $1,726.35 per ounce by 0651
GMT. U.S. gold futures GCv1 slipped 0.4% to $1,724.80 per
ounce.
"Yields are the big threat to gold in the near term," said
Michael McCarthy, chief market strategist at CMC Markets,
adding: "if the sell-off in bonds gathers momentum, gold could
fall below $1,700 'very quickly'."
U.S. Treasury yields held close to one-year highs reached on
March 18, while the dollar began the week firmly as U.S.
economic strength and a vaccine rollout proceeding much more
quickly than in Europe, drew investors into the greenback.
USD/
A stronger dollar makes greenback-denominated gold expensive
for holders of other currencies.
Further weighing on gold, Asian shares inched higher as the
chance of yet more trillions in U.S. fiscal spending underpinned
the global growth outlook. MKTS/GLOB
Market participants are now waiting for U.S. President Joe
Biden's infrastructure spending package on Wednesday, which is
speculated to be in the $3 trillion to $4 trillion range.
"While gold is still good for inflation, the problem is,
it's not good right now because yields are going higher in
concert with inflation," said Stephen Innes, chief global market
strategist at financial services firm Axi.
"We need those yields to stop going higher, and then you
know, once the inflation takes over then gold goes up."
Speculators raised their bullish positions in COMEX gold and
cut them in silver contracts in the week to March 23, the U.S.
Commodity Futures Trading Commission said on Friday. CFTC/
Among other metals, silver XAG= fell 0.9% to $24.82 per
ounce, palladium XPD= was down 1.2% to $2,644.18 and platinum
XPT= shed 0.7% to $1,176.42.