PRECIOUS-Gold slides more than 2% as U.S. Treasury yields rise

* Fed's George: rise in long-term rates a sign of optimism
* U.S. weekly jobless claims decline
* Platinum drops more than 3%

(Updates prices)
By Brijesh Patel
Feb 25 (Reuters) - Gold prices fell as much as 2.2% to a
near one-week low on Thursday as a surge in U.S. Treasury yields
and better-than-expected economic data out the United States
dented demand for the safe-haven metal.
Spot gold XAU= was down 1.8% at $1,772.86 per ounce at
01:49 p.m. ET (1849 GMT), after earlier touching its lowest
since Feb. 19 at $1,765.06.
U.S. gold futures GCv1 settled down 1.3% to $1,775.40.
"We're seeing bond yields move higher over the last few
weeks and that once again has taken some of the wind out of the
sails in the gold market," said David Meger, director of metals
trading at High Ridge Futures.
While gold is often sought as a hedge against inflation,
higher bond yields have eroded that status since they increase
the opportunity cost of holding bullion. US/
The recent rise in real rates is a sign of growing optimism
about the recovery and does not warrant a response from the
Federal Reserve, Kansas City Fed President Esther George said,
echoing Fed Chair Jerome Powell's testimony on Tuesday.
"Rising government bond yields are at least short-term
bearish for the precious metals markets. The shorter-term,
chart-based futures trader bears are having their way with the
gold market at present," said Kitco Metals senior analyst Jim
Wyckoff in a note.
Meanwhile, data showed fewer Americans filed new claims for
unemployment benefits last week. Gold is down nearly 6% so far this year after posting its
best year in a decade in 2020 on virus fears, lower interest
rates and unprecedented stimulus measures.
"There are other supportive factors for gold at play
(including) prospects of another stimulus package. We're not out
of the woods yet when it comes to economic recovery and the Fed
is unlikely to raise interest rates anytime soon," High Ridge
Futures' Meger said.
Silver XAG= dipped 1.9% to $27.46 an ounce, and platinum
XPT= fell 3.5% to $1,224.14.
Palladium XPD= slipped 1.1% to $2,408.98, after hitting
its highest in nearly two months.

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Gold prices versus real yeilds https://tmsnrt.rs/3upm8Y9
SPDR holdings slip as gold prices ease https://tmsnrt.rs/3dJ7R2s
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