* Gold on track to post first monthly rise since December
* Palladium retreats from all-time high hit on Thursday
* U.S. 10-year Treasury yields hover near two-week high
(Adds comments, updates prices)
By Shreyansi Singh
April 30 (Reuters) - Gold prices fell on Friday, on track to
post their worst week in a month, as strong U.S. economic data
and elevated Treasury yields weighed, while palladium came off a
record high scaled a day earlier.
Spot gold slipped 0.3% to $1,765.15 per ounce by 0346
GMT, down nearly 0.6% so far in the week. U.S. gold futures
were down 0.1% to $1,765.60 per ounce.
Despite the decline, bullion was poised for its first
monthly gain of this year, having jumped to a two-month high of
$1,797.67 on April 22.
Data showed on Thursday that U.S. economic growth
accelerated in the first quarter as fiscal stimulus fuelled
consumer spending and set the course for what is expected to be
the strongest performance this year in nearly four decades.
"This string of consecutively strong U.S. economic data is
weighing on gold," said Stephen Innes, managing partner at SPI
Asset Management, adding that people would rather book profits
on month-end after a decent run-up in gold.
"Gold still remains bid, it is just not a strong hand right
now, because of the month-end rebalancing."
Benchmark U.S. 10-year Treasury yields hovered
near a more than two-week high, increasing the opportunity cost
of holding non-yielding bullion.
"Better economic data weighed on bonds, with yields
subsequently rising and denting investor demand for the precious
metal," ANZ analysts said in a note.
Palladium fell 0.1% to $2,948.78 per ounce, after
hitting an all-time high of $2,981.99 on Thursday. It was still
on track to post its third consecutive weekly and monthly gain.
Silver fell 0.7% to $25.89 per ounce but was poised
for a 6% monthly gain - its biggest since December. Platinum
was up 0.2% at $1,200.66.
(Reporting by Shreyansi Singh in Bengaluru; Editing by
Subhranshu Sahu)
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