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PRECIOUS-Gold stumbles as U.S. yields rise; palladium notches fresh record

    * Palladium scales all-time peak of $2,981.99/oz
    * Gold hits two-week low of $1,755.81/oz
    * First-quarter U.S. GDP increases at 6.4% rate

 (Adds comments, updates prices)
    By Eileen Soreng
    April 29 (Reuters) - Gold fell more than 1% on Thursday as
U.S. Treasury yields gained on upbeat U.S. economic data, while
a supply deficit lifted palladium to a fresh record peak,
setting its sights on the $3,000 mark. 
    Spot gold        was down 0.7% to $1,768.26 per ounce by
1:41 p.m. EDT (1740 GMT), after hitting its lowest level since
April 15 at $1,755.81. U.S. gold futures        settled down
0.3% at $1,768.3.
    "Rising bond yields and upbeat risk appetite is denting the
safe-haven metal," said Kitco Metals senior analyst Jim Wyckoff.
    "We are still in a near-term price uptrend on the daily
charts. However that price uptrend now is in some jeopardy ...
If prices can't push above $1,800, let's say in the next week or
so, then prices will probably grind back sideways to lower."
    Benchmark 10-year note yields             rose to more than
a two-week high during the session on U.S. President Joe Biden's
proposal of trillions of dollars in new spending and data
showing U.S. economic growth accelerated in the first quarter.
                               
    Higher yields increase the opportunity cost for holding
non-yielding bullion. 
    Auto-catalyst metal palladium        scaled a peak of
$2,981.99 per ounce, and was last up 0.6% at $2,944.79. 
    "Main driver continues to be a lot of scarcity in the system
... Palladium is going to have persistent deficits going
forward, as we get this reflation trade being put on and the
expectation that the world is going to convincingly move towards
a greener economy," said Bart Melek, head of commodity
strategies at TD Securities. 
    Expectations of a deeper deficit, exacerbated by flooding at
the biggest supplier Nornickel's           mines, have pushed
palladium prices up 20% this year.                          
    "You might find palladium finding $3,000 as something of a
challenge technically because there may be some sell orders up
at those levels," said independent analyst Ross Norman.
    Platinum        dipped 2% to $1,195.34 per ounce and silver
       was 0.7% lower at $25.98.

 (Reporting by Eileen Soreng and Sumita Layek in Bengaluru;
Editing by Emelia Sithole-Matarise and Paul Simao)
  
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