* European Central Bank policy meeting due on Thursday * More platinum deficits loom after record 2020 undersupply - WPIC * Platinum prices likely to reach $1,300/oz over 12 months - UBS (Updates prices) By Shreyansi Singh March 10 (Reuters) - Gold eased on Wednesday after registering its biggest jump in two months in the last session, as higher U.S. Treasury yields and a stronger dollar remained a stumbling block for bullion. Spot gold was down 0.2% at $1,711.21 per ounce by 1207 GMT after rising more than 2% on Tuesday. U.S. gold futures fell 0.5% to $1,709.20. U.S. yields regained momentum on Wednesday, raising the opportunity cost of holding bullion, while the dollar also gained. "Gold prices are likely to remain under pressure, while concerns about inflation are front of mind for the market," said CMC Markets UK's chief market analyst, Michael Hewson, adding a stronger dollar could be a further drag on bullion prices over the next few days. The U.S. House of Representatives cleared the way for the $1.9 trillion U.S. COVID-19 relief bill to be considered on Wednesday, when it is expected to be approved. Although gold is widely considered a hedge against higher inflation anticipated to be fuelled by stimulus measures, higher yields have challenged that status this year. Policymakers were divided on a large-scale market intervention to counter a rise in yields ahead of a European Central Bank meeting on Thursday. The U.S. Federal Reserve "would have to flood markets even more, blue in the balance sheet further to keep yields at a low level, but that would here in the current environment only fuel more inflation expectations," said Quantitative Commodity Research analyst Peter Fertig. Silver fell 0.9% to $25.67 an ounce. Palladium lost 0.5% to $2,285.92, while platinum was down 0.4% at $1,163.98. More platinum deficits loom this year after a record undersupply of almost a million ounces in 2020, the World Platinum Investment Council said. Analysts at Swiss bank UBS forecast platinum prices reaching $1,300 over the next 12 months, driven by high investment demand and strained supply. (Reporting by Shreyansi Singh in Bengaluru, Editing by Robert Birsel and Louise Heavens)
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