PRECIOUS-Gold rises as dollar rally pauses, yields ease

(Updates prices)
* Dollar eases off from 5-month high
* Biden unveils $2 trillion-plus job plan
* Climb above $1,720/oz positive for bullion - analyst

By Brijesh Patel
April 1 (Reuters) - Gold rose on Thursday as a slight
pullback in the dollar and U.S. bond yields helped bullion
regain some its appeal as an inflation hedge against the
backdrop of President Joe Biden's multi-trillion-dollar
infrastructure investment plan.
Spot gold XAU= rose 0.4% to $1,713.10 per ounce by 1052
GMT, after touching its lowest since March 8 at $1,677.61 on
Wednesday. Most markets will be closed for Good Friday on April
2.
U.S. gold futures GCv1 were steady at $1,715.70 per ounce.
"The forces (dollar and U.S. yields) that pressured gold
prices lower earlier this week have tapered and we're seeing
some buying on dips as well," said Xiao Fu, head of commodities
markets strategy at Bank of China International.
"After Biden's infrastructure plan details, the market focus
has shifted back to this potential inflation prospect. But I
wouldn't say it's a big reversal in trend. Gold is still a
range-bound market with upside limited by rising 10-year
yields."
The dollar index .DXY backed off from a five-month high,
making gold less expensive for holders of other currencies.
Benchmark U.S. Treasury yields also eased. USD/ US/
On Wednesday, Biden announced his long-awaited $2
trillion-plus job plan, including $621 billion to rebuild
infrastructure. Some investors view gold as a hedge against higher inflation
that could follow stimulus measures, but higher Treasury yields
dull some of the appeal of the non-yielding commodity.
"The support zone of $1,675 worked perfectly for gold,
generating a solid rebound. However, the main trend has not
changed and continues to point lower," ActivTrades chief analyst
Carlo Alberto De Casa said in a note.
"A climb above $1,720 would be positive for bullion prices,
while only a clear recovery above $1,750 would turn around the
current bearish outlook."
Silver XAG= eased 0.3% to $24.32 per ounce, while platinum
XPT= fell 0.6% to $1,180.09 and palladium XPD= rose 0.2% to
$2,623.43.