PRECIOUS-Gold rebounds from three-week low as dollar rally pauses

(Adds analyst comment, updates prices)
* Dollar edges lower from 5-month high
* Biden unveils $2 trillion-plus job plan
* Spot gold faces resistance at $1,716/oz -analyst

By Asha Sistla
April 1 (Reuters) - Gold gained on Thursday from a
three-week low hit in the previous session, as the U.S. dollar
and Treasury yields eased, while President Joe Biden's $2
trillion-plus jobs plan further supported the metal's appeal as
a hedge against inflation.
Spot gold XAU= rose 0.6% to $1,717.60 per ounce by 0746
GMT, after touching its lowest since March 8 at $1,677.61 on
Wednesday. U.S. gold futures GCv1 were up 0.2% at $1,718.90
per ounce.
"It largely seems to be driven by the dollar index. We've
seen some easing back in the dollar. So, I think that's helping
gold," said Harshal Barot, a senior research consultant for
South Asia at Metals Focus.
The dollar index .DXY pulled back after hitting a
five-month high on Wednesday, making gold less expensive for
holders of other currencies. USD/
On Wednesday, Biden announced his second
multitrillion-dollar legislative proposal in two months in
office, including $621 billion to rebuild infrastructure.
"The probability that inflation will rise is definitely
something that many investors would be watching. So that is an
underlying support to gold, but the market still lacks clarity
in terms of how the packages will be funded," Barot added.
Gold is seen as a hedge against higher inflation that could
follow stimulus measures, but a recent spike in U.S. Treasury
yields has weighed on the non-yielding commodity. US/
For a reversal in the dollar recovery and gold's downtrend,
"probably have to see market participants pricing in a better
outlook for the European economy, and for the Asian region as
well," said IG Market analyst Kyle Rodda.
Spot gold faces resistance at $1,716 per ounce and it may
hover below this level for a day or retreat to $1,691, according
to Reuters technical analyst Wang Tao. TECH/C
Elsewhere, silver XAG= was up 0.1% at $24.42, while
platinum XPT= rose 0.3% to $1,190.75 and palladium XPD=
climbed 0.3% to $2,625.75.