Home Economy PRECIOUS-Gold gains as U.S. dollar, bond yields pull back; BoE eyed

PRECIOUS-Gold gains as U.S. dollar, bond yields pull back; BoE eyed

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* Dollar eases off two-week peak

* Palladium slips from record highs

* BoE to announce latest forecasts at 1100 GMT (Recasts, adds chart, updates prices)

May 6 (Reuters) – Gold rose on Thursday as the dollar retreated from two-week highs and U.S. Treasury yields fell, with traders focusing on economic data for clues on the Federal Reserve’s strategy on monetary support going forward.

Investors also awaited the outcome of a Bank of England meeting, where the central bank is expected to say that Britain’s economy is heading for a much stronger recovery this year than previously expected, and is likely to start slowing its pandemic emergency support.

Spot gold was up 0.4% at $1,793 per ounce by 0948 GMT. U.S. gold futures rose 0.5% to $1,793.50 per ounce.

“Market is pricing in a ‘more distant’ probability of a Fed rate hike after clarifications on Treasury Secretary Janet Yellen’s remarks. That has been supportive for gold, with yields on long-term…

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