PRECIOUS-Gold edges up as risk appetite eases, yields retreat


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    * U.S. weekly jobless claims rise unexpectedly 
    * ECB pledges to keep interest rates low for even longer 
    * Gold vulnerable to further pull-backs -analyst 

 (Adds latest prices)
    By Nakul Iyer
    July 22 (Reuters) - Gold inched higher on Thursday as stocks
and U.S. bond yields pulled back to offset a firmer dollar and
restore some of bullion's allure as a safe haven. 
    Spot gold  XAU=  had risen 0.1% to $1,804.45 per ounce by
1:33 p.m. EDT (1733 GMT). U.S. gold futures  GCv1  settled 0.1%
higher at $1,805.40.
    Benchmark U.S. Treasury yields retreated after hitting a
near one-week high and stocks paired initial gains as risk
sentiment was curbed by data showing U.S. jobless claims rose
unexpectedly to two-month highs, channelling some inflows to
    "Real interest rates are deeply negative, which shows that
inflation is running hot, and there's no chance the U.S. Federal
Reserve can make real rates positive short-term, so you have
people coming to the realisation that you need to own gold,"
said Michael Matousek, head trader at U.S. Global Investors.
    Gold also took support from a European Central Bank pledge
to keep interest rates at record lows for even longer.*:nL1N2OY07V
    "Both the U.S. Fed and the ECB are pretty much in sync in
delivering a lower interest rate environment for longer and that
should be positive for gold over the long-term," said Edward
Moya, senior market analyst at OANDA. 
    The Fed's policy meeting next week follows comments from
Chair Jerome Powell which suggested that the central bank would
remain accommodative despite recent spikes in inflation
    But "gold's persistent weakness against real yields points
to a vulnerable micro-structure and its inability to rally
despite ongoing risk-off highlights that speculative flows
remain particularly weak, reinforcing the potential for a deeper
pullback," TD securities wrote in a note.
    Elsewhere, silver  XAG=  was up 0.3% at $25.29 per ounce,
palladium  XPD=  gained 1.9% to $2,704.01 and platinum  XPT= 
rose 0.8% to $1,088.43.

 (Reporting by Nakul Iyer and Bharat Govind Gautam in Bengaluru
Editing by Dan Grebler and Mark Potter)
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