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PRECIOUS-Gold gives up early gains as U.S. dollar firms

    * U.S. dollar recovers from seven-week lows
    * 10-year U.S. Treasury yields drop below 1.6%
    * Focus turns to ECB policy meeting on Thursday

 (Recasts, adds quote, updates prices)
    By Sethuraman N R
    April 21 (Reuters) - Gold prices gave up early gains on
Wednesday as the U.S. dollar firmed, despite support for the
metal from falling Treasury yields and sagging global stocks on
fears of the impact on the global economy of a resurgence in
coronavirus cases.
    Spot gold        was up 0.1% at $1,778.19 per ounce at 0902
GMT, after gaining as much as 0.6% early in the session. U.S.
gold futures        were mostly unchanged at $1,778.90 per
ounce.
    "This week we have seen some dollar weakness, but that has
come to a halt and we are seeing some recovery there. That's why
gold is not making some more gains," said ABN Amro analyst
Georgette Boele.
    "Don't see much reason to buy gold at these levels as if we
get an uptick in the dollar and rally in yields, gold will move
lower again."
    The U.S. dollar firmed on Wednesday, rising from a
seven-week low hit overnight, making gold expensive for holders
of other currencies.       
    Benchmark 10-year U.S. Treasury yields             dropped
below 1.6%, reducing the opportunity cost of holding
non-yielding bullion.       
    MSCI's index of global shares                 fell 0.3%.
    Market participants now await the European Central Bank
meeting on Thursday for further clarity about stimulus plans for
the bloc. A U.S. Federal Reserve policy meeting is due next
week.
    "Gold should remain supported by continued physical interest
out of both Shanghai and India, while exchange traded fund
(ETF)flows are beginning to see recent outflows dry up," MKS
PAMP Group said in a note.
    "From a positioning perspective, recent short builds are
holding for the time being, however we expect these to be tested
through $1,800 to drive price action higher."
     Among other precious metals, silver        was up 0.1% at
$25.89 per ounce. Palladium        gained 0.4% to $2,778.93,
while platinum        was flat at $1,187.

 (Reporting by Nallur Sethuraman in Bengaluru
Editing by Peter Graff)
  
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