for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

PRECIOUS-Gold scales over 1-week peak on weaker dollar, yields

    * Dollar index down 0.4%
    * U.S. and Chinese data lifts equities to record highs
    * Investors await Fed minutes on Wednesday 

 (Updates prices)
    By Sumita Layek
    April 6 (Reuters) - Gold prices rose to their highest in
more than a week on Tuesday, after the metal's appeal was
bolstered by a weaker dollar and lower U.S. Treasury yields.
    Spot gold        was up 0.4% to $1,736.06 an ounce by 1245
GMT after hitting its highest level since March 25 at $1,738.65.
U.S. gold futures        gained 0.5% to $1,737.
    "A softer dollar is the main reason for the bid coming into
gold ... and also the yields, which during the past week have
not done a great deal," Saxo Bank analyst Ole Hansen said.
    The dollar        fell 0.4% against a basket of rivals,
making gold more affordable for holders of other currencies,
while benchmark U.S. Treasury yields were lower.           
    However, risk sentiment in wider financial markets remained
upbeat, with global equities at record highs on strong economic
data from China and the United States, reducing some demand for
safe-havens assets such as
gold.                                   
    "For the gold story to return to a firmer footing ... we
need to see either some geopolitical concerns or inflation pick
up more aggressively than the market has been pricing," Hansen
said.
    Investors are also awaiting minutes on Wednesday from the
Federal Reserve's last meeting for further clues on monetary
policy outlook.             
    Cleveland Fed Bank President Loretta Mester on Monday said
the U.S. economic outlook is brightening, though the U.S.
central bank should stick to its easy policy to support growth
further.            
    "The environment is not very robust for gold. The constant
rise in yields and a stable dollar on the back of continued
strong data from the United States have sort of sparked a
feeling of central banks becoming hawkish much before the
expected time," IG Market analyst Kyle Rodda said.
    In other precious metals, silver        rose 0.5% to $25.02
an ounce, palladium        added 0.8% to $2,686.22 and platinum
       gained 0.6% to $1,215.99.

 (Reporting by Sumita Layek in Bengaluru
Editing by David Goodman and Paul Simao)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up