PRECIOUS-Gold prices at over 2-week low as U.S. yields firm, dollar strengthens

(Updates prices)
* U.S. Treasury yields hit fresh 14-month peak
* Dollar index crosses four-month peak
* Palladium inches up after Monday's 5.5% decline

By Asha Sistla
March 30 (Reuters) - Gold prices slipped on Tuesday to their
lowest in more than two weeks, weighed down by a firm U.S.
dollar and Treasury yields as expectations of a swift economic
turnaround grew with vaccination rates gaining traction.
Bullion, often sought as a safe store of value in times of
economic turmoil, is sensitive to rising yields as they raise
the opportunity cost of holding non-yielding gold.
Spot gold XAU= fell 0.4% at $1,705.25 per ounce by 0633
GMT. Earlier in the session, bullion touched $1,703.39, its
lowest since March 12.
U.S. gold futures GCv1 were down 0.4% at $1,707.80 per
ounce.
"Primary weighing factor on gold prices is the continuous
rise in the U.S. long-term yields," said DailyFX strategist
Margaret Yang, adding that although gold prices should rise
being an inflation hedge, there is a constant decline in prices.
This decline in gold prices, "can be attributed to reflation
hopes as this infrastructure plan will not only inject liquidity
into the market, it'll actually pump money into the real economy
... therefore, the economic outlook is brighter than before."
Longer-dated Treasury yields hit a 14-month high amid
expectations that U.S. President Joe Biden's infrastructure
initiative could further bolster economic growth. US/
Further pressuring gold, dollar climbed to a one-year high
against the yen on Tuesday as investors fretted about the
potential fallout from the collapse of a hedge fund, identified
as Archegos Capital. USD/ MKTS/GLOB "Gold's consolidation is breaking and if downward pressure
takes prices below the $1,700 level, it could get ugly fast,"
Edward Moya, senior market analyst at OANDA wrote in a note.
"Massive support throughout the pandemic has been the $1,670
level and if that doesn't hold, not much support is seen until
the $1,600 level."
Elsewhere, silver XAG= was down 0.2% at $24.63 an ounce
and platinum XPT= shed 0.2% to $1,172.71.
Palladium XPD= gained 0.7% to $2,545.90, having slid 5.5%
in the previous session.