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PRECIOUS-Gold rebounds from 9-month trough on U.S. stimulus, lower bond yields

    * U.S. 10-year yields hold below one-year peak
    * Attack on Saudi's oil facilities boosts safe-haven demand
    * Holdings of SPDR Gold fell to 10-month low on Friday

 (Updates prices)
    By Sumita Layek
    March 8 (Reuters) - Gold rebounded on Monday from a
nine-month low hit last week, as bond yields retreated and the
passage of a massive U.S. stimulus package boosted bullion's
appeal as a hedge against inflation.
    Spot gold        rose 0.1% to $1,701.81 per ounce by 0713
GMT, after hitting its lowest since June 8 at $1,686.40 on
Friday. U.S. gold futures        climbed 0.1% to $1,700.90.
    "The market probably sold a bit too much last week on higher
yields and yields seem to be plateauing a little bit right now,"
said Stephen Innes, chief global market strategist at financial
services firm Axi.
    The yield on 10-year Treasury notes held below an over
one-year peak hit on Friday, reducing the opportunity cost of
holding the non-interest paying gold.      
    The passing of the $1.9 trillion COVID-19 relief plan by the
U.S. Senate on Saturday also provided support.             
    "Inflation is definitely going to go up" because of rising
oil and base metal prices, said DailyFX strategist Margaret
Yang.      
    Yang added that some of the individual U.S. stimulus money
may also go into investments such as gold exchange-traded funds
to hedge against future inflation. 
    An attack at the heart of Saudi Arabia's oil industry on
Sunday with drones and missiles from Yemen's Houthi forces is
also boosting gold's safe-haven demand, analysts
said.            
    Bullion is considered a safe asset during times of financial
and geopolitical uncertainty. 
    The dollar        hovered close to a three-month peak hit on
Friday, making gold expensive for other currency holders.      
    Holdings of the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust      , fell to a 10-month low on Friday.
         
    Silver        rose 0.9% to $25.40 an ounce. Palladium       
climbed 0.2% to $2,344.07. Platinum        gained 0.2% to
$1,132.12.

 (Reporting by Sumita Layek in Bengaluru; Editing by Aditya Soni
and Subhranshu Sahu)
  
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