* Palladium retreats from all-time high hit on Tuesday
* U.S. consumer confidence jumps to 14-month peak
* U.S. 10-year Treasury yields surge to near 2-week high
(Adds comments, updates prices)
By Shreyansi Singh
April 28 (Reuters) - Gold prices fell to a one-week low on
Wednesday, weighed down by firmer U.S. Treasury yields with
investors awaiting policy cues from the Federal Reserve's
statement, while palladium eased after scaling a record high in
the last session.
Spot gold was down 0.3% to $1,771.50 per ounce by
0348 GMT, having fallen to its lowest since April 20 at
$1,765.70 earlier in the day. U.S. gold futures eased
0.4% to $1,771.20 per ounce.
"Strong U.S. consumer sentiment data... and higher commodity
prices are pushing yields up and gold prices down as a result,"
said IG Market analyst Kyle Rodda.
Benchmark U.S. 10-year Treasury yields jumped to their
highest since April 15. While gold is considered a hedge against
inflation, higher yields challenge that status as they increase
the opportunity cost of holding bullion.
U.S. consumer confidence soared to a 14-month high in April,
as more businesses reopened.
The dollar index rose 0.1% against its rivals, making
gold more expensive for holders of other currencies.
Investors now await the Fed's statement due later in the day
which is expected to provide cues on the central bank's monetary
policy outlook.
The market will be "looking for signals that maybe the Fed
is starting to think about tapering or when they should taper",
said IG Market's Rodda.
Analysts and traders have slashed their gold price
forecasts, with many believing a return to last year's record
highs is unlikely as economic recovery tarnishes the safe-haven
metal's appeal, a Reuters poll showed.
Meanwhile, Japanese retail sales rose at the fastest pace in
five months in March as consumer demand recovered from the hit
it took from the pandemic.
Palladium fell 0.3% to $2,931.82 per ounce, after
hitting an all-time high of $2,962.50 on Tuesday.
Silver fell 0.9% to $26.01 per ounce. Platinum
was down 1% to $1,216.58.
(Reporting by Shreyansi Singh in Bengaluru; Editing by Rashmi
Aich and Subhranshu Sahu)
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