*US bond yields are expected to rise for the fourth consecutive
*The U.S. dollar fell from its highest level in nearly five months
*Gold prices are set to fall for the third consecutive month
*Palladium is expected to record its best monthly performance since February 2020
March 31 (Reuters) - gold rose more than 1% on Wednesday, driven by a fall in the U.S. dollar, but high U.S. Treasury yields are still expected to see its biggest quarterly decline in more than four years.
Spot gold rose 1.6% to $1711.27 an ounce at 1757 GMT after hitting its lowest level of $1677.61 since March 8. U.S. gold futures closed at $1715.60 an ounce, up 1.8%.
Gold prices fell more than 9% this quarter and are expected to record their worst quarterly performance since the end of December 2016.
"As bond yields stabilized and the dollar eased from recent highs, we also saw the gold market move slightly out of its lows," said David meger, head of metals trading at high ridge futures.
The US dollar index fell from its highest level in the past five months.
Meger said US President Biden's "very large-scale structural stimulus plan" raised concerns about inflation and should support the gold market.
In other precious metals, platinum rose 2.8% to $1186.49 an ounce, while palladium rose 1.3% to $2622.49 an ounce, expected to achieve its best monthly performance since February 2020.
Silver rose 1.5% to $24.38 an ounce, but fell more than 8% this month