Gold nears $1,800 level as U.S. dollar, yields retreat

Gold nears $1,800 level as U.S. dollar, yields retreat

Gold prices rose to a two-month high on Thursday, approaching the key $1,800 threshold as the U.S. dollar faltered with easing Treasury yields, while supply concerns kept palladium anchored near last session's record peak.Spot gold was steady at $1,793.32 per ounce by 0244 GMT, after hitting its highest since Feb. 25 at $1,797.67. U.S. gold futures were flat at $1,793.70 per ounce."What's obviously underpinning the upswing (in gold) is that dynamic in U.S. Treasuries... which is sort of pushing lower in the very short term," said IG Market analyst Kyle Rodda, adding that a drop below 1.5% in yields could help push gold above $1,800 levels.An improvement in market sentiment overnight and its knock-on effects on the dollar helped gold jump back again and test the top of its recent ranges, Rodda said.           Benchmark 10-year U.S. Treasury yield was pinned below 1.6%, reducing the opportunity cost of holding non-yielding bullion. The dollar index held near multi-week lows against most major currencies.            Market participants now await a European Central Bank meeting due later in the day and a U.S. Federal Reserve policy meeting next week.Palladium gained 0.1% to $2,877.12 an ounce, having surged to an all-time high of $2,891.20 per ounce on Wednesday."Long running tightness in the market is fuelling the metal's