*US bond yields are expected to rise for the fourth consecutive
month
*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