PRECIOUS-Gold rises over 1% on weaker dollar, U.S. stimulus cheer

* For gold, $1,760-$1,765 level a key hurdle - analyst
* Specs cut bullish positions in gold, silver - CFTC
* SPDR Gold Trust holdings fell 0.6% on Friday

(Updates prices)
By Shreyansi Singh
March 1 (Reuters) - Gold prices rose more than 1% on Monday,
recovering from a more than eight-month low touched in the
previous session, as the dollar weakened and the U.S. House of
Representatives passed a massive $1.9 trillion stimulus package.
Spot gold XAU= was up 1.4% at $1,757.80 per ounce by 0741
GMT, after rising as much as 1.5% to $1,759.53 earlier in the
session.
U.S. gold futures GCv1 rose 1.5% to $1,755.30.
Gold prices tumbled 3% on Friday, posting their biggest
monthly drop since November 2016 in February, due to a spike in
U.S. bond yields. US/
"A reversal of the higher yield trend and a weaker
dollar are allowing gold to move higher," said Stephen Innes,
chief global market strategist at financial services firm Axi,
adding that the U.S. stimulus package news was also supporting
bullion prices.
U.S. President Joe Biden scored his first legislative win as
the House of Representatives passed his $1.9 trillion
coronavirus relief package early Saturday. The dollar .DXY slipped from a one-week high hit in the
previous session, raising gold's appeal for holders of other
currencies. USD/
Gold is considered a hedge against inflation, likely to
result from widespread stimulus, while higher bond yields
challenge that status. US/
On the technical front, the psychological $1,700 level is
very significant, while the $1,760-$1,765 range is an important
hurdle for gold to rise further, Innes said.
Meanwhile, holdings in the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust GLD , fell 0.6% on Friday
to the lowest since May 2020. GOL/ETF
Speculators cut their bullish positions in COMEX gold and
silver contracts in the week to Feb. 23, the U.S. Commodity
Futures Trading Commission (CFTC) said on Friday. Silver XAG= rose 1.3% to $26.96 an ounce, while palladium
XPD= climbed 1.8% to $2,357.94. Platinum XPT= gained 3% to
$1,223.87.