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PRECIOUS-Gold hits 2-week low amid rising U.S. yields, dollar

    * Silver also slips to two-week low
    * Gold hits lowest level since May 19 at $1,827.80/oz

 (Updates prices)
    By Eileen Soreng
    June 1 (Reuters) - Gold prices slid to a two-week low on
Wednesday on a stronger dollar and U.S. Treasury yields amid
renewed global inflation concerns that could prompt aggressive
monetary policy measures. 
    Spot gold        was down 0.4% to $1,830.66 per ounce by
1147 GMT, after hitting its lowest since May 19 at $1,827.80.
U.S. gold futures        were down 0.9% at $1,832.50.
    Rising real yields in the United States and continental
Europe and a firm dollar are negative factors for gold, said
analyst Peter Fertig at Quantitative Commodity Research. 
    "Gold could see some support only if the central banks don't
do their job properly to fight inflation." 
    The dollar index        was up 0.2% lifted by higher
Treasury yields.             
    Markets have priced half-point interest rate rises from the
Fed this month and next, though uncertainty lingers about the
outlook beyond.
    U.S. President Joe Biden on Tuesday met with Federal Reserve
Chair Jerome Powell to discuss historic inflation that is
draining American wallets.                           
    Bullion is considered a hedge against inflation and a safe
haven during times of political and economic uncertainty.
However, higher U.S. interest rates increase the opportunity
cost of holding gold and boosts the dollar in which the bullion
is priced.
    Euro zone inflation data was much higher than expected on
Tuesday, a week before a crucial European Central Bank policy
meeting.             
    "There is no sign that inflation will fall anytime soon. In
our opinion, the inflation figures will exert renewed pressure
on the ECB to end its ultra-loose monetary policy," Commerzbank
analyst Daniel Briesemann said in a note. 
    Spot silver        rose 0.2% to $21.58 per ounce, having hit
a two-week low earlier. 
    Both platinum        and palladium        were up 1.1% at
$975.53 and $2,021.23 per ounce, respectively. 

 (Reporting by Eileen Soreng in Bengaluru; editing by Jason
Neely)
  
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