* Dollar slips from near four-week peak * Platinum rises 2%; silver up more than 1% * Wall Street retreats after strong gains on Monday (Updates prices) By Brijesh Patel March 2 (Reuters) - Gold prices rose on Tuesday, inching up from a more than eight-month low, as a retreat in the dollar and U.S. Treasury yields lifted demand for the safe-haven metal. Spot gold was up 0.8% at $1,736.46 per ounce by 1.52 p.m. ET (1852 GMT), after falling to $1,706.70 earlier in the session, its lowest since June 15. U.S. gold futures settled up 0.6% at $1,733.60 per ounce. "Gold surges near session highs as yields and USD dip," said Tai Wong, a trader at investment bank BMO in New York. "Gold's $30 rally from the lows in Asia suggests that investors and short-term speculators are bargain-hunting and triggering short-covering as well. A close above $1,725 per ounce would be considered by many a key reversal day." The dollar index slipped 0.3% after hitting a nearly four-week high against its rivals, making gold less expensive for holders of other currencies. Further supporting gold, benchmark U.S. Treasury yields eased from a one-year high hit last week, while U.S. stocks dipped after strong gains on Monday. "The main dilemma right now for the gold bulls is the rising short-term U.S. Treasury yields," said Bob Haberkorn, senior market strategist at RJO Futures. "Despite the U.S. Federal Reserve being very accommodative with stimulus, with low rates for the extended period of time, in the short term, we have to deal with these rising short-term rates." While gold is considered a shield against inflation, higher yields threaten that status as they increase the opportunity cost of holding bullion. Market participants kept a close watch on the $1.9 trillion stimulus bill, which will be debated in the U.S. Senate this week. Silver gained 1.4% to $26.84 an ounce, having earlier dipped to a more than one-month low. Palladium was up 0.8% at $2,369.26 an ounce, while platinum rose 2.1% to $1,209.58 (Reporting by Brijesh Patel in Bengaluru; editing by David Evans and Barbara Lewis)
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