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PRECIOUS-Gold slips to 1-week low as yields rise ahead of Fed

    * U.S. Fed policy statement due 1800 GMT
    * U.S. 10-year Treasury yields rise to near 2-week high
    * Palladium off record highs hit on Tuesday
    * Goldman Sachs sees gold at $2,000/oz over next 6 months

 (Updates prices, adds comment)
    By Sethuraman N R
    April 28 (Reuters) - Gold eased to a one-week low on
Wednesday, pressured by a jump in U.S. Treasury yields and a
firmer dollar as investors awaited the Federal Reserve's policy
decision.
    Spot gold        was down 0.6% to $1,765.85 per ounce by
1106 GMT, after dipping to its lowest since April 20 at
$1,762.50. U.S. gold futures        dropped 0.7% to $1,765.70.
    "Gold couldn't surpass $1,800 and is basically slowing down.
We're seeing a scenario where the U.S. yields and dollar are
recovering, which is negative for gold," said Carlo Alberto De
Casa, chief analyst, ActivTrades.
    "If the Fed gives some direction to yields, there could be a
significant move for gold. Otherwise, expect gold to remain in
the $1,750-$1,800 range," De Casa said.
    Benchmark U.S. 10-year Treasury yields jumped to their
highest since April 13, increasing the opportunity cost of
holding bullion.      
    The dollar index        rose 0.1%.       
    Fed Chairman Jerome Powell is expected later on Wednesday to
reaffirm easy monetary policy will continue for a prolonged
period.                          
    "Powell will attempt to portray the current rise in
inflation as temporary and to dispel any speculation about a
withdrawal of bond purchases in the near future. It is perfectly
possible then that yields will fall again this evening, allowing
gold to recoup its latest losses," Commerzbank analysts said in
a note.
    Analysts have cut their gold price forecasts, with many
believing an economic recovery could impede the metal's return
to last year's record highs, a Reuters poll showed.             
    Goldman Sachs, however, sees gold at $2,000 an ounce over
the next six months and said it was too early for bitcoin to
compete with gold for safe-haven demand.             
    Palladium        fell 1.2% to $2,906.33 per ounce, after
hitting an all-time high of $2,962.50 on Tuesday. 
    Silver        shed 1.4% to $25.88 per ounce, after reaching
a low since April 21 at $25.80. Platinum        was down 1% at
$1,216.10.

 (Reporting by Nallur Sethuraman and Arpan Varghese in
Bengaluru; editing by Barbara Lewis and Louise Heavens)
  
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