PRECIOUS-Gold hits 1-week low as yields rise ahead of Fed statement

* Palladium retreats from all-time high hit on Tuesday
* U.S. consumer confidence jumps to 14-month peak
* U.S. 10-year Treasury yields surge to near 2-week high

(Updates prices)
By Shreyansi Singh
April 28 (Reuters) - Gold prices slipped to a one-week low
on Wednesday as U.S. Treasury yields firmed up ahead of a
Federal Reserve policy statement later in the day.
Spot gold XAU= was down 0.6% at $1,766.44 per ounce by
0729 GMT, having fallen to its lowest since April 20 at
$1,764.90 earlier in the day. U.S. gold futures GCv1 eased
0.7% to $1,766.70 per ounce.
"Strong U.S. consumer sentiment data ... and higher
commodity prices are pushing yields up and gold prices down as a
result," IG Market analyst Kyle Rodda said.
Benchmark U.S. 10-year Treasury yields jumped to their
highest since April 13, increasing the opportunity cost of
holding bullion. US/
U.S. consumer confidence soared to a 14-month high in April,
as more businesses reopened. The dollar index .DXY rose 0.2% against its rivals, making
gold more expensive for holders of other currencies. USD/
Investors now await the Fed's statement, which is expected
to provide cues on the central bank's monetary policy outlook.
The market will be "looking for signals that maybe the Fed
is starting to think about tapering or when they should taper",
IG Market's Rodda said.
Analysts and traders have slashed their gold price
forecasts, with many believing a return to last year's record
highs is unlikely as economic recovery tarnishes the safe-haven
metal's appeal, a Reuters poll showed. Meanwhile, analysts at Goldman Sachs see gold prices at
$2,000 an ounce over the next six months and said it was too
early for bitcoin to compete with gold for safe-haven demand.
Bitcoin BTC=BTSP , also considered a store of value, rose
to a one-week high of $55,809.86 earlier in the session.
Palladium XPD= fell 0.4% to $2,931.51 per ounce, after
hitting an all-time high of $2,962.50 on Tuesday.
Silver XAG= fell 1.2% to $25.92 per ounce. Platinum XPT=
was down 0.9% at $1,217.90.