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PRECIOUS-Gold regains some lustre as dollar slides to one-month low

       * Gold hit a two-week high earlier in the session
    * Federal Reserve's May meeting minutes due on Wednesday
    * Nornickel cuts estimate of 2022 global palladium deficit

 (Updates prices)
    By Ashitha Shivaprasad
    May 23 (Reuters) - Gold prices climbed on Monday, as
weakness in the dollar and growth concerns in the economy lifted
the metal, although non-yielding bullion pared some gains after
U.S. Treasury yields rose.
    Spot gold        rose 0.4% to $1,853.70 per ounce by 2:20
p.m. ET (1820 GMT). Prices rose more than 1% and hit their
highest since May 9 at $1,865.29 earlier in the session.
    U.S. gold futures        settled up 0.3% at $1,847.8.
    "There is a strong corrective bounce in gold as the U.S.
dollar is seeing a sharp fall," said Kitco senior analyst Jim
    The dollar slumped to its lowest in a month, making gold
cheaper for other currency holders.
    "Traders and investors' risk appetite remains far less than
robust, which is prompting some safe haven demand for gold.
Investors are beginning to realise that inflation is going to be
problematic for longer than just a transitory period."
     Dimming gold's appeal, U.S. Treasury yields gained on the
    Although gold is considered a hedge against inflation, it is
highly sensitive to rising U.S. interest rates, which raise the
opportunity cost of holding non-yielding bullion.
    "While today's increase is welcomed by holders of gold, how
much further the precious metal can climb is likely to be capped
by the reality that central banks in both America and Europe are
set on a course of interest rate hikes over the coming months,"
Rupert Rowling, market analyst at Kinesis Money, said in a note.
    Atlanta Federal Reserve President Raphael Bostic said on
Monday that the quick response in financial markets to tighten
monetary policy offers hope that other parts of the economy may
adjust more quickly as well.
    Spot silver        gained 0.2% to $21.79 per ounce, platinum
       was up 0.1% to $956.76 and palladium        rose 1.3% to
    Russia's Nornickel          , the world's largest producer
of palladium, expects global palladium market deficit to be at
100,000 troy ounces in 2022, downgrading estimates from its
February forecast.

 (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by
Shailesh Kuber and Amy Caren Daniel)

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