PRECIOUS-Gold climbs over 1% on dollar sell-off

    * Gold gains for third straight session
    * Dollar index        slumps 1% to one-month low
    * Palladium rises over 3%
    * Nornickel cuts estimate of 2022 global palladium deficit

 (Adds detail, updates prices)
    By Ashitha Shivaprasad
    May 23 (Reuters) - Gold prices rose over 1% on Monday,
boosted by a slide in U.S. dollar to its lowest in a month,
while growth concerns in the economy kept bullion's safe-haven
demand intact.
    Spot gold        rose 0.7% to $1,857.89 per ounce by 1238
GMT. Prices hit their highest since May 9 at $1,865.29 earlier
in the session. U.S. gold futures        gained 0.8% to
    The dollar slumped 1% as investors kept up selling pressure,
cutting bets on further dollar gains from rising U.S. rates. A
weaker dollar makes gold cheaper for overseas buyers.
    "Gold bugs are drawing strength from a weaker dollar,
concerns over accelerating inflation, and global growth fears...
In the near term, a weaker dollar could provide the precious
metal a tailwind, lifting prices further away from the 200-day
simple moving average," FXTM analyst Lukman Otunuga said. 
    "While gold seems to be pushing higher, the Federal
Reserve's aggressive approach towards high-interest rates could
act as a major roadblock for the zero-yielding metal."
    Gold is considered as a hedge against inflation and a safe
haven during economic turmoil. However, it is extremely
sensitive to U.S. interest rates because the bullion yields no
    St. Louis Federal Reserve Bank President James Bullard
reiterated his view last week that the U.S. central bank ought
to raise interest rates to 3.5% this year to get high inflation
more quickly under control.              
    ANZ Research in a note said the rising risk of
underperformance in equity markets has also enhanced gold's
risk-diversifier appeal.
    Stocks hovered just above bear market territory as economic
fallout from the war in Ukraine and persistently high inflation
capped gains in equity benchmarks.            
    Spot silver        gained 1.2% to $22.01 per ounce, platinum
       firmed 1.7% to $971.38, and palladium        climbed 2.8%
to $2,018.28.
    Russia's Nornickel           expects global palladium market
deficit at 100,000 troy ounces in 2022, downgrading estimate
from its February forecast.             

 (Reporting by Bharat Govind Gautam and Ashitha Shivaprasad in
Bengaluru; Editing by Rashmi Aich and Shailesh Kuber)