PRECIOUS-Gold off 7-month low on dollar weakness, but yields weigh - Reuters

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    * Benchmark Treasury yields hit highest in nearly a year
    * Bitcoin scales record high on Sunday
    * Markets await Powell testimony to Congress on Tuesday

 (Adds comment, details, updates prices)
    By Sumita Layek
    Feb 22 (Reuters) - Gold prices inched higher on Monday after
hitting a more than seven-month low in the previous session, as
support from a weaker dollar eclipsed pressure from firmer
Treasury yields.
    Spot gold        rose 0.1% to $1,783.56 per ounce by 0304
GMT, having touched its lowest since July 2 at $1,759.29 on
Friday. U.S. gold futures        gained 0.4% to $1,784.40.
    "The dollar coming off is helping to negate the rise in
Treasury yields," said Howie Lee, an economist at OCBC Bank.
    "Gold is in a weird place... while there's clearly a need
for inflation hedging, firming risk sentiment has pressured
gold."
    The dollar        eased against rivals, making gold cheaper
for other currency holders, but benchmark U.S. Treasury yields
            hit a near one-year high, increasing the opportunity
cost of holding non-yielding bullion.           
    Apart from the $1.9 trillion U.S. COVID-19 relief bill that
is expected to pass by the end of the week, market participants
await Federal Reserve Chairman Jerome Powell's testimony on the
Semiannual Monetary Report to Congress starting Tuesday.
                         
    "The rise in yields will be the major headwind for gold for
now, but if Powell hints at any dovishness or implies that
current yields are too high for sustained economic recovery...
then we can see gold embark on a rally again," Lee said.
    Bitcoin            hit a record high on Sunday, after
scaling a market capitalisation of $1 trillion on
Friday.            
    Silver        gained 1.1% to $27.06 an ounce, while platinum
       rose 0.8% to $1,283.82.
    Palladium        climbed 1% to $2,400.93, having earlier hit
a more than one-month high at $2,431.50. 

 (Reporting by Sumita Layek in Bengaluru; Editing by Vinay
Dwivedi and Subhranshu Sahu)
  

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