PRECIOUS-Gold falls as firmer Treasury yields dull appeal

* $1,750/oz level of resistance for gold in short
term-analyst
* U.S. dollar index edges down

(Adds comment, updates prices)
By Shreyansi Singh
April 14 (Reuters) - Gold fell on Wednesday as an uptick in
U.S. Treasury yields weighed on the non-yielding bullion's
appeal, eclipsing support from a softer dollar.
Spot gold XAU= fell 0.5% to $1,736.02 per ounce by 2:20
p.m EDT (1820 GMT). U.S. gold futures GCv1 settled down 0.6%
at $1,736.30.
The uptick in bond yields seems to be "adding some very
light pressure to the (gold) market," said David Meger, director
of metals trading at High Ridge Futures.
But gold's pullback looks more technical in nature with the
$1,750 level being both a technical and a psychological level of
resistance in the short term, Meger added.
Bullion jumped as much as 0.9% on Tuesday after U.S.
consumer prices rose by the most in more than 8-1/2 years in
March, kicking off what is expected to be a brief period of
higher inflation. While bullion is considered a hedge against inflation,
higher yields challenge that status as they translate into
higher opportunity cost of holding bullion. US/
"The second quarter is likely to present the greatest macro
headwinds for gold given our expectations for the USD to firm
further temporarily," Standard Chartered analyst Suki Cooper
said.
"But thereafter, we expect the USD to revert to its
weakening trend, real yields to remain negative and an uptick in
inflation expectations to reignite investor interest in gold,"
Cooper added.
Federal Reserve Chair Jerome Powell said the central bank
will reduce its monthly bond purchases before it commits to an
interest rate increase, clarifying the order of monetary policy
changes that are still months if not years in the future.
The Fed reported in its latest "Beige Book" the U.S.
economic recovery accelerated to a moderate pace from late
February to early April. Silver XAG= rose 0.2% to $25.38 per ounce and platinum
XPT= rose 1.2% to $1,170.13. Palladium XPD= dipped 0.6% to
$2,674.34.