PRECIOUS-Gold prices ease as risk appetite returns ahead of ECB meet

Reuters

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    * Stocks shrug off virus worries
    * Spot gold may fall to $1,785/oz - technicals
    * Treasury yields rebound after 20-year auction

 (Adds chart, updates prices)
    By Brijesh Patel
    July 22 (Reuters) - Gold prices fell on Thursday, hovering
near a more than one-week low, weighed down by a stronger dollar
and a rebound in risk sentiment, while investors awaited the
European Central Bank policy meeting later in the day.
    Spot gold  XAU=  was down 0.2% to $1,799.72 per ounce, as of
0632 GMT, after hitting its lowest since July 12 at $1,793.59 in
the previous session.
    U.S. gold futures  GCv1  eased 0.2% to $1,800.10 per ounce.
    "Gold prices are under pressure because the dollar is now
hovering around highest in three months and Wall Street
rebounded for the second day, meaning that traders are shrugging
off virus concerns and are back to reflation trade," said
Margaret Yang, a strategist at DailyFX.
    Asian stocks rallied on the back of overnight gains on Wall
Street, as investors largely overlooked apprehension about the
Delta coronavirus variant and inflation.  MKTS/GLOB   .N   US/ 
    The dollar index  .DXY  held steady, hovering below a
3-1/2-month peak ahead of the ECB policy decision due at 1145
GMT. USD/ 
    The European Central Bank (ECB) policymakers will implement
for the first time changes to their strategy and are all but
certain to promise an even longer period of stimulus to make
good on the commitment to boost inflation.  urn:newsml:reuters.com:*:nL4N2OX1SP
    "ECB is widely expected to remain dovish, so this may lead
euro to weaken against the dollar causing the greenback to rise,
which will be negative for gold. For now, gold's near-term
momentum seems tilted to the downside," Yang said.
    Meanwhile, benchmark U.S. Treasury yields  US10YT=RR 
continued their bounce from five-month lows following a weak
20-year bond auction.
    Spot gold may break a support at $1,795 per ounce and fall
towards $1,785, according to Reuters technical analyst Wang Tao.
 TECH/C 
    Among other precious metals, silver  XAG=  edged 0.1% lower
to $25.20 per ounce, palladium  XPD=  rose 0.7% to $2,672.21,
and platinum  XPT=  fell 0.1% to $1,078.50.
    

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 (Reporting by Brijesh Patel in Bengaluru; editing by Vinay
Dwivedi)
 ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848
5832, Outside U.S. +91 8067493865; Reuters Messaging:
Brijesh.Patel1.thomsonreuters.com@reuters.net))

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