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PRECIOUS-Gold dips as firmer Treasury yields, dollar counter Ukraine risks

    (Adds analyst comment, details and updates prices)
    * U.S. 10-yr Treasury yields hit highest since January 2019
    * Palladium extends gains to scale more than two-week high

    By Asha Sistla
    April 11 (Reuters) - Gold prices dipped in range-bound
trading on Monday, as elevated Treasury yields boosted the
dollar and countered support from uncertainty around the Ukraine
war, while palladium rose after London's decision to block
trading of the metal from Russia.
    Spot gold        was down 0.2% at $1,942.85 per ounce by
0730 GMT, after hitting a more than one-week high of $1,949.32
earlier in the day. U.S. gold futures        were up 0.1% at
    "Gold is still trading sideways and that reflects the
conflicting currents that we're looking at. There's still real
concerns about the geopolitical outlook and the potential for
escalation in Ukraine," said Michael McCarthy, chief strategy
officer at Tiger Brokers, Australia.
    "At the same time, a stronger U.S. dollar and potential for
higher interest rates around the globe are keeping a lid on
enthusiasm for gold."
    The U.S. dollar index        gained ground, bolstered by
U.S. 10-year Treasury yields hitting a more than three-year high
and prospects of aggressive rate hikes by the U.S. Federal
Reserve to contain soaring inflation.
    A stronger dollar makes gold less attractive for other
currency holders, while higher U.S. interest rates and yields
increase the opportunity cost of holding bullion, which is also
used as a hedge against inflationary pressures.
    Ukraine's armed forces braced on Monday for a new Russian
offensive as powerful explosions rocked cities in the south and
east, lending some support to the safe-haven metal.
    Palladium        gained 3% at 2,499.19 after hitting a more
than two-week high earlier in the session.
    "The surge in palladium prices is likely to accelerate the
shift from palladium to platinum for use in catalytic
converters," UBS analysts said in a note.
    The auto-catalyst metal had gained 8.6% on Friday after
newly refined Russian platinum and palladium were suspended from
trading in London, the metals' biggest trade hub.
    Spot silver        was up 0.1% at $24.77 per ounce and
platinum        rose 0.7% to $981.88.

 (Reporting by Asha Sistla in Bengaluru; Editing by Subhranshu
Sahu and Sherry Jacob-Phillips)

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