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      Dollar eases off recent peak
    

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      Fed raises rates by 75 bps to 3-3.25% range
    

  
 
    By Brijesh Patel
       Sept 22 (Reuters) - Gold prices pared losses on Thursday
as the dollar pulled back from a two-decade high, although
elevated U.S. bond yields and hawkish remarks on future rate
hikes from the Federal Reserve pressured bullion.
    Spot gold        was down 0.2% at $1,670.40 per ounce by
0926 GMT, after dropping as much as 1% in the Asia session.
    U.S. gold futures        edged 0.2% higher to $1,678.70.
    "Rising U.S. yields continue to pressure gold prices. Unless
yields suddenly start to come down and the dollar starts to
weaken, we're probably not going to see significantly higher
gold prices," said Michael Hewson, chief markets analyst at CMC
Markets.
    "The Fed started hiking rates from March and gold has
basically been trending down since then, and if the Fed
continues to hike, then gold will continue to fall."
    The Fed hiked interest rates by 75 basis points on Wednesday
for a third consecutive time and signaled more increases are to
come to tame soaring inflation.             
    Rising rates dull bullion's appeal since it yields no
interest. Gold prices have fallen nearly 20% since scaling above
the key $2,000 per ounce mark in March.
    Benchmark 10-year U.S. Treasury yields             were
hovering close to their highest level since 2011, increasing the
opportunity cost of holding bullion.      
    Offering some respite to gold, the dollar fell 0.6% after
hitting a new two-decade high against its rivals, making the
greenback-priced metal less expensive for buyers holding other
currencies.                    
    "The rapid pace of hikes is certainly going to weigh on gold
prices, but eventually the concerns about growth and recession
will come to the fore and lead to renewed buying interest in
gold at lower levels," said Sugandha Sachdeva, vice president of
commodity and currency research at Religare Broking.
    Spot silver        was steady at $19.60 per ounce, platinum
       slipped 0.4% to $903.90 and palladium        fell 0.2% to
$2,150.02.     
 (Reporting by Brijesh Patel in Bengaluru; Editing by Krishna
Chandra Eluri)