PRECIOUS-Gold steadies as stocks surge; growth risks, rate cut bets lend support

* U.S. stock indexes close at record high
* Gold hits $1,435.99/oz, highest since June 25
* Palladium hits more than three-month peak
* SPDR Gold holdings fell 0.2% on Tuesday

(Updates prices)
By Diptendu Lahiri
July 3 (Reuters) - Gold steadied on Wednesday, paring
earlier gains as a rally in equities reduced the attraction of
the non-yielding metal, while global growth concerns and
prospects for dovish monetary policy kept bullion supported.
Spot gold XAU= was steady at $1,416.98 per ounce as of
1:33 p.m. EDT (1733 GMT), after earlier touching $1,435.99, its
highest level since June 25.
U.S. gold futures GCv1 settled about 1% higher at
$1,420.90 per ounce.
Wall Street stocks rose on Wednesday, with each of the major
indexes closing at a record high, as expectations grew that the
U.S. Federal Reserve would take a more dovish turn as a raft of
data provided more evidence of a slowing economy. .N
The yellow metal reversed course briefly after U.S. markets
opened, but later steadied.
"Gold has had quite a strong performance in the last two
days and this fall is just an ebb in the flow," said Daniel
Ghali, commodity strategist at TD Securities.
The case for gold - which last week hit a six-year high at
$1,438.63 per ounce - is still positive, analysts said, driven
by a dovish outlook from major central banks and an escalation
of tensions between the United States and Iran.
European Union leaders nominated IMF chief Christine Lagarde
as Mario Draghi's replacement at the helm of the European
Central Bank after marathon talks that have exposed deep
divisions in the bloc. "German 10-year Bund yields were at record lows and the U.S.
benchmark yields are also falling on government monetary
policy, giving the equity markets a boost and taking away
investor interest from gold," said Jim Wyckoff, senior analyst
at Kitco.com.
U.S. Treasury yields fell on Wednesday with yields on U.S.
benchmark 10-year Treasury notes hitting their lowest in over
2-1/2 years as euro zone yields tumbled on record lows on bets
the European Central Bank's next chief would stay a dovish
course to help the euro zone economy. US/
Government yields around the world were also pressured after
Bank of England Governor Mark Carney flagged uncertainties over
Brexit and trade conflicts that prompted speculation the central
bank may lower interest rates.
On the technical front, gold will find support at Tuesday's
close, around $1,418, and could find resistance around $1,440,
TD Securities' Ghali added.
Holdings of the SPDR Gold Trust GLD have gained more than
5% over the past one month. GOL/ETF
Silver XAG= was slightly lower at $15.30 per ounce. The
precious metal is unlikely to follow gold's upward trajectory,
analysts said. Platinum XPT= climbed 1.3% to $838.50 per ounce, while
palladium XPD= rose 0.8% to $1,570.27, hovering near a
three-month peak of $1,572.50 touched earlier in the session.