PRECIOUS-Gold rebounds as U.S. Treasury yields ease

* Weekly jobless claims fall 34,000 to 473,000
* Russia's Nornickel resumes full operations at Oktyabrsky
mine

(Recasts, adds comment, updates prices)
By Eileen Soreng
May 13 (Reuters) - Gold bounced off a one-week low hit
earlier on Thursday as a dip in U.S. Treasury yields bolstered
the metal's appeal as an inflation hedge.
Spot gold XAU= was up 0.5% to $1,824.89 per ounce by 2:14
p.m. EDT (1814 GMT), recovering from its lowest level since May
6 at $1,808.44.
U.S. gold futures GCv1 settled 0.1% higher at $1,824.
"All the inflation numbers are positively affecting gold
prices and the momentum is likely to continue going forward,"
said Jeffrey Sica, founder of Circle Squared Alternative
Investments.
Data showed fewer Americans filed new claims for
unemployment benefits last week. Meanwhile, producer prices
increased more than expected in April.
This followed Wednesday's data showing U.S. consumer prices
jumped the most in nearly 12 years last month, which intensified
concerns over rising inflation and possible interest rate hikes.
However, the Federal Reserve has pledged to keep rates low
until the economy reaches full employment and inflation hits 2%
and is on track to "moderately" exceed that level for some time.
"Dips in gold remain a buying opportunity," said David
Meger, director of metals trading at High Ridge Futures.
"We're in a fundamentally strong underlying condition of
going through recovery in the economy along with a very low
interest rate environment that creates inflationary pressures in
the market."
Meanwhile benchmark U.S. 10-year Treasury yields US10YT=RR
eased after four straight days of gains.
Gold is considered a hedge against potential inflation
triggered by widespread stimulus, although elevated Treasury
yields have dulled non-yielding bullion's appeal this year.
Investors are now awaiting U.S. retail sales data on Friday.
Elsewhere, palladium XPD= rose 0.1% to $2,859.13 per
ounce, having hit a three-week low after the world's largest
producer of the metal, Russia's Nornickel GMKN.MM , said it had
resumed full operations at one of its two mines hit by flooding
this year. Silver XAG= was flat at $27.03 per ounce, while platinum
XPT= fell 0.8% to $1,200.31.