* Biden unveils plans for $1.8 trillion stimulus package
    * Fed keeps interest rates, bond-buying programme unchanged
    * Palladium deficit expected to widen this year- Capital
Economics
 (Adds comments, details)
    By Swati Verma
    April 29 (Reuters) - Gold prices rose on Thursday as the
dollar weakened after the U.S. Federal Reserve decided to keep
interest rates low for the foreseeable future even though it
took a rosier view of the economic recovery.
    Spot gold        gained 0.3% to $1,786.36 per ounce by 0253
GMT. U.S. gold futures        rose 0.7% to $1,786.50 per ounce.
    The dollar index        edged 0.1% lower against its rivals,
boosting gold's appeal for other currency holders.       
    "The Fed stayed close to its dovish message overnight at its
latest FOMC meeting. With this risk point removed, investors
rushed back into the global recovery trade, pushing the dollar
lower, with U.S. bond yields remaining unchanged," OANDA senior
market analyst Jeffrey Halley said.      
    "Investors are loading up on gold long positions again after
the Fed passed without any major surprises or hints of
tapering."
    On Wednesday, the Fed said it was too early to consider
rolling back its emergency support with so many workers still
left jobless by the pandemic.             
    Further helping gold was U.S. President Joe Biden's sweeping
$1.8 trillion package plan for families and education in his
first speech to Congress.             
    Gold tends to benefit from widespread stimulus measures
because it is viewed as a hedge against inflation.
    Elsewhere, auto-catalyst metal palladium        edged up
0.7% to $2,948.24 per ounce, having scaled an all-time peak of
$2,962.50 on Tuesday.
    "Investment demand for palladium is minimal and ... we
expect it to benefit more than platinum from a rebound in
autocatalyst demand as it is used primarily in gasoline
vehicles," Capital Economics wrote in a note.
    Combining this with supply disruptions from the two mines in
Russia, the palladium deficit is expected to widen this year and
help prices to reach $3,000 per ounce, it added.
    Platinum        was up 0.4% at $1,223.46 and silver       
gained 0.8% to $26.37 per ounce. 
 (Reporting by Shreyansi Singh and Swati Verma in Bengaluru;
Editing by Krishna Chandra Eluri and Subhranshu Sahu)
  

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