PRECIOUS-Gold rises as easing bond yields offset firm dollar

* Powell's comments at virtual Jobs Summit awaited
* U.S. Senate delays debate on $1.9 trillion stimulus bill

(Updates prices)
By K. Sathya Narayanan
March 4 (Reuters) - Gold rose on Thursday, buoyed by lower
U.S. Treasury yields, but a firm dollar limited bullion's
advance and kept it near a nine-month low.
Spot gold XAU= was up 0.5% at $1,719.67 per ounce at 1228
GMT, having dropped on Wednesday to its lowest since June 9 at
$1,701.40. U.S. gold futures GCv1 rose 0.1% to $1,717.70.
The U.S. dollar .DXY climbed 0.2% against key rivals,
making gold more expensive for investors holding other
currencies. USD/
U.S. Treasury yields US10YT=RR US30YT=RR inched down,
but were still at elevated levels, while Germany's 10-year yield
DE10YT=RR also eased. US/ MKTS/GLOB
"You have two conflicting forces," Quantitative Commodity
Research analyst Peter Fertig said.
"However, it is still not an environment, currently, which
would argue to be overweight in the precious metals," and rather
than overall (yield) levels, it's more the change in bond yields
that would impact gold prices, Fertig added.
Gold is considered a hedge against inflation which could
result from massive economic stimulus measures, but that status
has been threatened by higher bond yields, which increase the
opportunity cost of holding non-yielding bullion.
Investors awaited any remarks from U.S. Federal Reserve
Chair Jerome Powell on the rapid rise in yields and clues on
policy outlook when he speaks at a virtual Wall Street Journal
Jobs Summit at 1705 GMT. The market will need more than "jawboning" if the Fed is
serious about keeping interest rates low and the yield curve
would continue to steepen in the absence of that, which is
negative for gold, said Howie Lee, an economist at OCBC Bank.
Meanwhile, the U.S. Senate delayed a debate on a $1.9
trillion COVID-19 relief bill until at least Thursday.
Silver XAG= was steady at $26.09 per ounce, while
palladium XPD= slipped 0.1% to $2,350.68. Platinum XPT= fell
0.5% to $1,160.98 per ounce.