PRECIOUS-Gold gains as dollar, yields fall after U.S. Fed maintains stance

Reuters

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    * Fed committed to support economy until recovery is more
secure
    * Dollar trading near more than two-week low
    * Markets eye Powell's speech at IMF conference 

 (Recasts, adds comments; updates prices)
    By Diptendu Lahiri
    April 8 (Reuters) - Gold prices rose on Thursday, as yields
on longer-term U.S. Treasuries dropped along with the dollar
after the Federal Reserve in its latest policy meeting minutes
reinforced expectations that interest rates would remain low for
some time.
    Spot gold  XAU=  gained 0.3% at $1,741.85 per ounce by 0927
GMT. U.S. gold futures  GCv1  rose 0.1% to $1,742.90 per ounce.
    "Gold is gaining at the moment as it is tracing the path of
the U.S. Treasuries, which is also putting some pressure on the
dollar," said Yingtao Jin, an analyst at StoneX Group.  US/ 
 USD/ 
    "As the Fed mentioned, they see the economy strong at the
beginning of 2022, but that is at a cost of rising inflation
rate, which can go out of hand and that is the time when we will
see some solid gains in gold."
    Non-yielding gold is widely considered as a hedge against
increasing inflation.
    Fed officials are committed to supporting the economy until
its recovery is more secure, minutes of the U.S. central bank's
most recent policy meeting released on Wednesday showed.
 urn:newsml:reuters.com:*:nL1N2M01WM
    Several policymakers also indicated they thought interest
rates might need to increase sooner than anticipated, although
there was little sense of urgency around that issue in the
minutes.
    "The Fed was very assuring about its stand on interest
rates, although investors are not convinced," said Michael
McCarthy, chief market strategist at CMC Markets.
    "Investors are expecting the Fed will have to hike interest
rates as early as January 2022 as it becomes a huge task once
inflation starts going out of control."
    Investors now await Fed Chair Jerome Powell's speech at a
virtual International Monetary Fund conference later on
Thursday.
    Among other metals, silver  XAG=  rose 0.3% to $25.18 per
ounce and palladium  XPD=  was down 0.4% at $2,613.74. Platinum
 XPT=  dipped 0.1% to $1,224.03.
    

 (Reporting by Diptendu Lahiri in Bengaluru; editing by
Uttaresh.V, Subhranshu Sahu and Amy Caren Daniel)
 ((Diptendu.Lahiri@thomsonreuters.com; within U.S. +1 651 848
5832; outside U.S. +91 80 6749 3683;; Reuters Messaging:
diptendu.lahiri.thomsonreuters.com@reuters.net))

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