PRECIOUS-Gold slips as rising bond yields, dollar dent safe havens

* Investors await ECB policy meeting on Thursday
* Gold could breach $2,000/oz in the next year or two -Citi
* Silver pops back up above $18

(Updates prices, adds market details)
By Sumita Layek
Sept 10 (Reuters) - Gold prices fell to their lowest level
in nearly a month on Tuesday, as rising bond yields and the
dollar dented the allure of safe-haven assets.
Spot gold XAU= was down 0.4% at $1,492.20 per ounce as of
1:44 p.m. EDT (1744 GMT), having earlier hit its lowest level
since Aug. 13, at $1,486. U.S. gold futures GCcv1 settled 0.8%
lower at $1,499.20 per ounce.
U.S. Treasury yields climbed to a multi-week peak, tracking
German bonds, as hopes of easing U.S.-China trade tensions and
expectations of fiscal stimulus measures by global central banks
buoyed risk sentiment. US/
"We're seeing safe haven liquidation in the market, there is
no reason for safe haven at the moment. Although equities are
pulling back today, they are showing some residual strength,"
said Phillip Streible, senior commodities strategist at RJO
Futures.
Bullion prices have shed more than 4%, or over $60, in less
than a week, mainly hurt by a broad uptick in equity markets.
MKTS/GLOB
Considering the large number of net long positions in gold,
"all those people who jumped into this party late are starting
to liquidate their positions right now. We're (also) seeing
yields are up a bit," Streible added.
Speculators increased their bullish positions in COMEX gold
and silver contracts in the week to Sept. 3, the U.S. Commodity
Futures Trading Commission said on Friday. CFTC/
The dollar .DXY also rose, making gold more expensive for
investors holding other currencies. DXY
However, analysts said gold's overall positive trajectory
was still intact, with the metal supported by lingering risks to
global economic growth and uncertainty surrounding U.S.-China
trade.
Investors are now awaiting Thursday's European Central Bank
meeting, which is widely expected to deliver a cut to interest
rates. The U.S. Federal Reserve too is expected to cut rates
next week as policymakers race to battle risks of a global
downturn. Lower U.S. interest rates put pressure on the dollar and
bond yields, increasing the appeal of non-yielding bullion.
"We now expect gold prices to trade stronger for longer,
possibly breaching $2,000/oz and posting new cyclical highs at
some point in the next year or two," Citi bank analysts wrote in
a note.
Elsewhere, platinum XPT= dropped 1.3% to $934.45 per
ounce, after nearing the $1,000 mark last week.
"Platinum has rallied the past two weeks as investors looked
for 'cheaper' haven assets. While consolidation is likely in the
near term, we remain bullish platinum over the next 12 months,"
Citi said.
Silver XAG= rose 0.9% to $18.12 per ounce and palladium
XPD= rose 0.9% to $1,557.92.