Gold firms as dollar, yields retreat; palladium hits 1-year high

Gold firms as dollar, yields retreat; palladium hits 1-year high

Gold gained on Tuesday on a slight retreat in the dollar and U.S. Treasury yields ahead of a Federal Reserve meeting, while auto-catalyst metal palladium scaled a one-year peak after a top producer cut its 2021 output forecast.Spot gold was up 0.1% at $1,734.11 per ounce by 1214 GMT. U.S. gold futures edged 0.1% higher to $1,731.40."A bit of dollar weakness and a slight retracement in the yields have given a little bit of a lift to gold, but gold has got some technical resistance ahead, at $1,745/oz," said Ross Norman, an independent analyst.The benchmark 10-year U.S. Treasury yields eased from a more than one-year touched last week, while the dollar fell 0.1% against its rivals. The U.S. central bank's Federal Open Market Committee ends its two-day meeting on Wednesday. The Fed has kept interest rates pinned near zero for the past year, and has promised to keep them there until the economy reaches full employment. "The Fed may address rising inflation concerns and even consider to push forward asset purchasing to compensate for the rising yields and that would be very positive for gold prices," said DailyFX strategist Margaret Yang.Elsewhere, palladium jumped 5% to $2,507.37 per ounce, after scaling a one-year