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PRECIOUS-Gold eases below $1,900 as rebounding dollar, yields weigh

    * Markets await U.S. GDP, jobs data
    * U.S. Treasury yields, dollar ticks up
    * Fed can tame inflation without wrecking recovery -Clarida

 (Recasts, adds analyst comment, updates prices)
    By Sumita Layek
    May 26 (Reuters) - Gold fell below the key $1,900 per ounce
level on Wednesday, as a rebounding dollar and U.S. Treasury
yields dimmed its appeal, although continued expectations of a
dovish stance from U.S. Federal Reserve kept its losses limited.
    Spot gold        was 0.3% lower at $1,893.20 per ounce by
2:14 p.m. EDT (1814 GMT), having earlier hit its highest since
Jan. 8 at $1,912.50. U.S. gold futures        settled up 0.2% at
$1,901.20 per ounce.
    The rise in U.S. yields and the dollar strength gave some
people excuse to get out of gold, said Edward Moya, senior
market analyst at OANDA. 
    "But we are still going to see gold prices continue to rise
and $1,950 level seems like a very short-term goal," Moya added.
    Benchmark U.S. 10-year Treasury yields turned higher,
increasing the opportunity cost of holding the non-yielding
gold, while the dollar index        rebounded from lows, making
gold expensive for holders of other currencies.             
    Several Fed officials have reiterated their commitment to a
dovish policy stance, while Fed vice chair Richard Clarida on
Tuesday said they can curb an outbreak of inflation should it
occur without throwing recovery off track.             
    "With investors still sounding the alarm over inflation,
institutional interest in the precious metals complex is likely
to continue rising following months of outflows, providing an
offsetting force against taper fears for the time being," TD
Securities said in a note.
    Gold is often considered a hedge against inflation.
    Market participants are now looking to U.S. gross domestic
product, jobless claims and consumer spending data this week.
    Elsewhere, palladium        fell 0.8% to $2,747.59 per
ounce, silver        eased 1.1% to $27.68 per ounce and platinum
       rose 0.4% to $1,187.51 per ounce.

 (Reporting by Sumita Layek in Bengaluru; Editing by Kirsten
Donovan and Will Dunham)
  
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