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PRECIOUS-Gold turns negative as dollar strengthens; focus on U.S. GDP data

    * Biden unveils plans for $1.8 trillion stimulus package
    * U.S. Fed keeps interest rates, bond-buying programme
unchanged
    * U.S. Q1 GDP data due at 1230 GMT
    * Palladium deficit expected to widen this year-Capital
Economics

 (Recasts, adds comments, and updates prices)
    By Swati Verma
    April 29 (Reuters) - Gold prices reversed course to trade
lower on Thursday as the dollar firmed, with investors awaiting
U.S. GDP data for more cues after the Federal Reserve
acknowledged a brighter economic outlook though it stood pat on
its dovish policy stance.
    Spot gold        was down 0.1% at $1,780.10 per ounce by
0803 GMT. U.S. gold futures        rose 0.4% to $1,780.50 per
ounce.
    "The fact that the Fed was optimistic about the economic
recovery means that gold will find it difficult to break higher
immediately. In the United States, the economic momentum has
also meant that yields have an upward bias, which will keep gold
capped," said Harshal Barot, a senior research consultant for
South Asia at Metals Focus.
    Gold prices closed higher on Wednesday after the Fed decided
to keep interest rates low and said it was too early to consider
rolling back its emergency support.             
    U.S. President Joe Biden also unveiled a sweeping $1.8
trillion package plan for families and education in his first
speech to Congress.             
    "The gold market lacks confidence. Having reached $1,790
overnight and once again failed to challenge $1,800, the
conviction among traders remains low," said Saxo Bank analyst
Ole Hansen.
    "The market keeps a close eye on correlation to other
markets and with a slightly stronger dollar and real yields
moving higher, profit-taking and selling emerged."
    Elsewhere, auto-catalyst metal palladium        rose 0.7% to
$2,948.43 per ounce, having scaled an all-time peak of $2,962.50
on Tuesday.
    "Investment demand for palladium is minimal and ... we
expect it to benefit more than platinum from a rebound in
autocatalyst demand as it is used primarily in gasoline
vehicles," Capital Economics wrote in a note.
    Combining this with supply disruptions from the two mines in
Russia, the palladium deficit is expected to widen this year and
help prices reach $3,000 per ounce, it added.
    Platinum        was steady at $1,219.01 while silver       
gained 0.8% to $26.37 per ounce. 

 (Reporting by Shreyansi Singh and Swati Verma in Bengaluru;
Editing by Krishna Chandra Eluri, Subhranshu Sahu and Sherry
Jacob-Phillips)
  
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