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PRECIOUS-Gold gains for 5th straight session as dollar, yields retreat

       * Renewed growth in gold ETFs have supported
recovery-analyst
    * Dollar hits fresh one-month low

 (Recasts, adds comments, updates prices)
    By Seher Dareen
    May 24 (Reuters) - Gold prices rose to their highest in two
weeks on Tuesday, with the safe-have metal benefiting from a
wilting U.S. dollar and as Treasury yields declined on subdued
risk appetite.
    Spot gold        rose 0.6% to $1,863.69 per ounce by 10:50
a.m. ET (1450 GMT), after hitting its highest since May 9 at
$1,868.69 earlier in the session. U.S. gold futures        rose
0.8% to $1,863.00.
    Weakness in the dollar index along with a fall in U.S.
Treasury yields from their recent highs has provided a
supportive environment for gold, said David Meger, director of
metals trading at High Ridge Futures.
    The greenback hit a one-month low, while U.S. 10-year
Treasury yields also edged lower as weakness in equities revived
safe-haven demand for the debt.
    "Gold traders are increasingly questioning the Fed's
willingness to hike into a recession, as growing economic
concern is breathing life into the gold market. Upside flow from
CTAs along with renewed growth in ETFs have supported the
recovery," analysts at TD Securities wrote in a note.
     The yellow metal is seen as a safe store of value during
times of economic crisis and a hedge against inflation, but
rising interest rates tend to weigh on non-yielding bullion.
    Once the Federal Reserve has delivered half-of-a-percentage
point rate hikes [in June and July] as Chair Jerome Powell has
signaled, "a pause in September might make sense," as per
Atlanta Fed President Raphael Bostic.
    "Now that we know what we're getting out of the Fed, you
could argue that gold once again has a fairly clear path moving
forward," Meger added, highlighting the market still questions
whether the rate hikes would be enough to stave off inflationary
pressures in the short term.
    Spot silver        rose 1.2% to $22.03 per ounce, platinum
       fell 0.6% to $952.82 and palladium        fell 0.3% to
$1,986.91.



 (Reporting by Seher Dareen in Bengaluru; Editing by Krishna
Chandra Eluri)

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