PRECIOUS-Gold scales 1-week high as dollar falters, yields ease

* Gold's trend seems to be to the downside - analyst
* Investors await Powell's testimony to Congress
* Silver hits three-week high

(Updates prices)
By Sumita Layek
Feb 23 (Reuters) - Gold climbed to a one-week high on
Tuesday, bolstered by a weaker dollar and a retreat in U.S.
Treasury yields, while concerns over rising inflation further
boosted bullion's appeal.
Spot gold XAU= was up 0.1% at $1,810.71 per ounce by 0706
GMT, after hitting its highest since Feb. 16 at $1,815.63
earlier in the session. U.S. gold futures GCv1 gained 0.1% to
$1,810.20.
"One of the few assets that is more out of favour than gold
at the moment is the dollar... so that is supporting gold prices
by extension," said IG Market analyst Kyle Rodda.
The dollar .DXY hit its lowest in more than a month,
making gold cheaper for holders of other currencies, as
investors await U.S. Federal Reserve Chairman Jerome Powell's
testimony to Congress later in the day. USD/ Benchmark U.S. Treasury yields US10YT=RR eased from a near
one-year peak hit on Monday, reducing the opportunity cost of
holding non-yielding bullion. US/
"Gold's trend seems to be to the downside, and there's no
indication that it's reversing for now... until we get a real
spike in inflation expectations or a Fed that talks about
controlling the yield curve," Rodda said.
Gold, often viewed as an inflationary hedge, rose 1.5% in
the previous session, as fears of rising inflation dragged
global equities lower. MKTS/GLOB
The European Central Bank on Monday signalled policymakers
are becoming uncomfortable with the recent surge in government
bond yields. Gold was "well supported throughout the pandemic as
investors sought a haven for funds. But the tide is turning, as
interest rates start to rise and investors rekindle their love
of bonds," ANZ analysts said in a note.
"However, fixed interest returns may be severely eroded if
inflation takes off."
Silver XAG= eased 0.4% to $28.05 an ounce, having earlier
hit a three-week high of $28.31. Platinum XPT= fell 0.8% to
$1,262.13, while palladium XPD= shed 0.2% to $2,391.55.