PRECIOUS-Gold rises over 1% as dollar, yields retreat

(New throughout, adds comments, updates prices)
* Dollar eases off from 5-month high
* Biden unveils $2 trillion-plus job plan
* U.S. weekly jobless claims rise unexpectedly

By Shreyansi Singh
April 1 (Reuters) - Gold rose over 1% on Thursday on a
retreat in the dollar and U.S. bond yields, while grim jobless
data raised prospects for a slower economic recovery and more
stimulus that could spur demand for bullion as an
inflation-hedge.
Spot gold XAU= rose 1.2% to $1,727.52 per ounce by 10:38
a.m. EDT (1438 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 gained 0.7% to $1,728.30 per ounce.
The number of Americans filing new claims for unemployment
benefits unexpectedly rose last week, the Labor Department said.
"The higher initial claims than were expected could lead to
more stimulus and a slower recovery," said Phillip Streible,
chief market strategist at Blue Line Futures in Chicago, adding
a weakening dollar and softer yields are helping prices.
The dollar index .DXY marched back from a five-month high
hit in the previous session, making gold less expensive for
other currency holders. Benchmark U.S. Treasury yields also
eased. USD/ US/
On Wednesday, Biden announced his long-awaited $2
trillion-plus job plan, that called for a sweeping use of
government power to reshape the American economy. With gold being oversold and the Federal Reserve keeping
rates low, gold investors see an opportunity knocking, said
Michael Matousek, head trader at U.S. Global Investors.
While gold is considered a hedge against inflation from
widespread stimulus, higher bond yields this year have
threatened that status as they translate into a higher
opportunity cost of holding bullion.
"A retreat in yields, especially in the key U.S. 10-year
Treasury, as inflation pressures recede holds out the
possibility of a recovery in gold prices," James Steel, chief
precious metals analyst at HSBC wrote in a note.
Silver XAG= rose 0.9% to $24.61 per ounce, while platinum
XPT= edged up 1% to $1,199.34 and palladium XPD= was up 1.1%
at $2,647.69.