PRECIOUS-Gold slips off 1-week peak as bond yields bounce back

* $1.9 trillion U.S. COVID-19 bill wins final approval
* ECB signals faster bond buys in coming quarter
* U.S. weekly jobless claims fall in the latest week

(Updates prices)
By Brijesh Patel
March 11 (Reuters) - Gold eased off a one-week high on
Thursday after U.S. Treasury yields rose after
better-than-expected jobless claims data.
Spot gold XAU= fell 0.1% to $1,725.00 per ounce by 1:57
p.m EST (1856 GMT), after hitting its highest since March 3 at
$1,739.63 earlier.
U.S. gold futures GCv1 settled little changed at
$1,722.60.
"10-year Treasury yields have now bounced again, which has
stabilized the dollar and is taking some air out of gold," said
Tai Wong, a trader at investment bank BMO in New York.
"We may have seen short-term lows at $1,680 per ounce, but a
higher-yield environment is likely to prevent a significant
rally; Perhaps a $1,700-$1,800 range in the near term as market
tries to find equilibrium in yields."
Data showed the number of Americans filing new claims for
jobless benefits dropped to a four-month low last week.
Better-than-expected economic numbers lifted 10-year
Treasury yields above 1.5%, while the dollar index .DXY moved
away from a one-week low. US/ USD/
"Bond yields have been rising in recent weeks on worries
about problematic inflation surfacing as the major economies of
the world have turned on their money spigots wide open over the
past year," said Kitco Metals senior analyst Jim Wyckoff in a
note.
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.
The European Central Bank said it would use its 1.85
trillion Pandemic Emergency Purchase Programme more generously
over coming months to stop any unwarranted rise in debt
financing costs. A $1.9 trillion U.S. COVID-19 relief bill was also approved
on Wednesday. Silver XAG= fell 0.2% to $26.12 per ounce. Palladium
XPD= eased 0.2% to $1,200.11 per ounce, while platinum XPT=
gained 1.6% to $2,343.95.