PRECIOUS-Gold steady as stronger dollar counters Europe virus worries

(Updates prices)
* Dollar hits fresh four-month high
* Yellen, Powell express confidence in U.S. recovery
* Silver slips to over two-week low

By Asha Sistla
March 25 (Reuters) - Gold prices held steady on Thursday as
a stronger U.S. dollar countered concerns that surging COVID-19
cases across Europe could slow the pace of economic recovery.
Spot gold XAU= was little changed at $1,733.48 per ounce
by 0745 GMT. U.S. gold futures GCv1 were down 0.1% to
$1,732.20 per ounce.
"One of the issues for gold is there seems to be two camps
-for those worried about new lockdowns in Europe and ...those
who have a very positive view of the economic outlook," said
Michael McCarthy, chief market strategist at CMC Markets, adding
both these opposing scenarios were mildly supportive of gold.
Gold is also considered a hedge against inflation, which is
likely spurred by widespread stimulus to boost economic growth.
U.S. Federal Reserve members indicated on Wednesday that the
central bank will start to raise rates depending on economic
outcomes and that it will not reduce monetary policy
accommodation until it sees actual improvements. Making gold expensive for holders of non-U.S. currencies,
the dollar index jumped to fresh four-month highs on concerns
about extended economic lockdowns in Europe and potential U.S.
tax hikes. USD/
U.S. Treasury yields dipped, with the market appearing to
stabilise after benchmark yields reached one-year highs last
week. US/
"Stabilising bond yields, sanguine comments from the U.S.
Fed are keeping gold in a range without much direction," said
Michael Langford, director at corporate advisory AirGuide.
In other metals, palladium XPD= was flat at $2,634.50 and
platinum XPT= was down 0.2% at $1,164.99.
Silver XAG= shed 0.4% to $24.96, having fallen to a more
than two-week low of $24.93 earlier in the session.