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PRECIOUS-Gold slips as rate-hike bets grow, yields rise

       * U.S. Fed Chair Powell to testify before Congress this week
    * Conflicting signals limit gold's move - analysts
    * European stock markets extend gains
    * Recession risk keeps investors cautious

 (Updates details and prices)
    By Arundhati Sarkar
    June 21 (Reuters) - Gold prices edged lower on Tuesday as
U.S. Treasury yields ticked higher amid the prospect of more
interest rate hikes, overshadowing support from a retreat in the
dollar.
     Spot gold        eased 0.3% to $1,833.40 per ounce by 1215
GMT. U.S. gold futures        fell 0.2% to $1,836.30.
    The dollar, which has actually been the key driver for gold,
is significantly softer, but the countervailing force is coming
from a much higher U.S. Treasury yield, said Ross Norman, an
independent analyst.
    Higher interest rates and bond yields increase the
opportunity cost of holding gold, which yields no interest.
    The benchmark U.S. 10-year Treasury             yield rose.
On the other hand, the dollar        weakened, making bullion
more attractive for buyers holding other currencies.
    After the Federal Reserve announced its biggest interest
rate hike since 1994 earlier this month, other major central
banks followed suit, leaning towards aggressive monetary policy
tightening to tame soaring inflation.
    European Central Bank Chief Christine Lagarde reaffirmed
rate hike plans this week, with the Bank of England's chief
economist also echoing similar thoughts.

    "There are conflicting factors at play that have prevented
the metal from making a decisive move in one or the other
direction," Fawad Razaqzada, market analyst at City Index said.
    Fed Chair Jerome Powell will testify in Washington D.C.
later this week.
    Meanwhile, European stock markets extended gains, aided by
chemical, mining and oil stocks as dip buyers emerged after a
bruising sell-off last week on recession fears.
    Spot silver        rose 0.2% to $21.63 per ounce, platinum
       gained 0.3% to $934.56, and palladium        rose 0.75%
to $1,860.57 per ounce.




 (Reporting by Arundhati Sarkar in Bengaluru; Editing by Sherry
Jacob-Phillips and Amy Caren Daniel)

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