PRECIOUS-Gold retreats over 1%, but still on course for weekly gain

    * Investors eye U.S. PPI data later in the day
    * Fed's Powell sees inflation unlikely
    * Palladium faces biggest weekly decline in six weeks

 (Updates prices)
    By Sumita Layek
    April 9 (Reuters) - Gold fell more than 1% on Friday,
weighed down by a rising dollar and U.S. Treasury yields, but
bullion was still on course to for its first weekly gain in
    Spot gold        fell 1% to $1,738.43 per ounce by 1243 GMT,
having hit its highest since March 1 at $1,758.45 on Thursday.
For the week, however, prices were up 0.5%.
    U.S. gold futures        slipped 1.1% to $1,738.50.
    "Gold's had a fairly decent week on the back of weaker U.S.
yields and the dollar," but they are slightly up now and that's
weighing on prices, said CMC Markets UK's chief market analyst,
Michael Hewson.
    The dollar        and benchmark U.S. yields have rebounded
from two-week lows, making gold less appealing.            
    Data out of China showed factory-gate prices rose at their
fastest annual pace since July 2018 in March, while the producer
price index (PPI) rose 4.4%. U.S. PPI data is due later in the
    "If we get a similarly strong number (in U.S. PPI), that
could reawaken the inflation genie and put upward pressure on
U.S. yields, and that in turn will hurt gold," Hewson said.
    However, Federal Reserve Chair Jerome Powell on Thursday
reiterated that higher inflation numbers that would require the
Fed to react with rate hikes were unlikely.             
    "Gold's retreat from last year's peak is a 'mini-correction'
in a longer bull market," said Davis Hall, head of capital
markets in Asia at Indosuez wealth management.
    "A lot of that speculative froth has been withdrawn as
bitcoin picked up the baton... (but) as long as real yields
remain flat to negative, gold has that underlying long-term
    Silver        slipped 1.4% to $25.07, while platinum       
shed 2.5% to $1,198.81.
   Palladium        rose 0.3% to $2,632.36, but was on track for
its biggest weekly fall since the week ending Feb. 26.

 (Reporting by Sumita Layek in Bengaluru; Additional reporting
by Tom Westbrook; Editing by Pravin Char and Nick Macfie)