PRECIOUS-Gold eases as dollar firms, investors await Powell testimony

    * Gold's trend seems to be to the downside- analyst
    * U.S. 10-year yields hover near one-year high  

 (Adds comment, details, updates prices)
    By K. Sathya Narayanan
    Feb 23 (Reuters) - Gold eased from an one-week peak on
Tuesday as the dollar firmed, and held in a tight range as
investors turned cautious ahead of the U.S. Federal Reserve
Chairman Jerome Powell's testimony to Congress later in the day.
    Spot gold        fell 0.1% to $1,807.51 per ounce by 1025
GMT. U.S. gold futures        eased 0.1% to $1,806.70.
    Movements in gold are indicative of a "wait and see
approach", said OANDA analyst Craig Erlam.
    The testimony before the Senate Banking Committee on Tuesday
and House of Representatives Financial Services Committee on
Wednesday will be Powell's first since President Joe Biden and
his fellow Democrats took control of the White House and Capitol
    "There are clearly going to be a number of questions around
what (rising U.S. Treasury yields, stimulus and improved
economic outlook) would mean for inflation, the Fed outlook and
the risks associated with it," OANDA's Erlam said.
    Bullion earlier rose to its highest since Feb. 16 at
$1,815.63 as the dollar        briefly touched a more than
one-month low.
    However, the U.S. currency has since rebounded and was last
up 0.1% against key rivals.       
    Also tarnishing appeal for the non-yielding bullion,
benchmark U.S. Treasury yield             hovered near an
one-year high scaled on Monday.      
    "Gold's trend seems to be to the downside, and there's no
indication that it's reversing for now... until we get a real
spike in inflation expectations or a Fed that talks about
controlling the yield curve," said IG Market analyst Kyle Rodda.
    Rising yields tend to hurt bullion's appeal as an inflation
hedge since they increase the opportunity cost of holding the
    Silver        was down 1% at $27.88 an ounce, having earlier
hit a three-week peak at $28.31. Platinum        fell 1.9% to
$1,248.06, while palladium        declined 0.8% to $2,377.19.

 (Reporting by K. Sathya Narayanan and Sumita Layek in
Bengaluru; editing by Philippa Fletcher)