March 3 (Reuters) - Gold edged down on Wednesday, as firm U.S. Treasury yields continued to pressure the non-yielding bullion, although prices held above the 8-1/2-month trough hit in the previous session.
FUNDAMENTALS
* Spot gold XAU= eased 0.2% at $1,734.16 per ounce by 0052 GMT, having dropped to their lowest since June 15 at $1,706.70 on Tuesday. U.S. gold futures GCv1 held steady at $1,734.10.
* Benchmark U.S. Treasury yields dipped for a fourth straight day after jumping to a one-year high last week, but held near 1.4% levels, making non-interest paying gold unattractive to investors. US/
* After a sharp sell-off last week, U.S. Treasuries have stabilized with bond market indicators and derivatives positioning pointing to near-term calm, but an improving economy could trigger another slide in their prices. U.S. Federal Reserve officials, facing a potential bout of inflation this spring in an economy turbocharged by vaccines and government spending, on Tuesday said they will nevertheless keep their easy money plans in place in hopes of speeding displaced Americans back to work. Investors now await developments in a $1.9 trillion U.S. stimulus bill passed by the House of Representatives last week, as the Senate begins debate over the legislation this week. Silver XAG= dipped 0.3% to $26.67 an ounce, while palladium XPD= climbed 0.6% at $2,376.50. Platinum XPT= shed 0.3% to $1,200.50.
DATA/EVENTS (GMT) 0700 UK
Reserve Assets Total
Feb 0850 France
Markit Serv, Comp PMIs
Feb 0855 Germany
Markit Serv PMI
Feb 0855 Germany
Markit Comp Final PMI
Feb 0900 EU
Markit Serv, Comp Final PMIs Feb 1445 US
Markit Serv, Comp Final PMIs Feb 1500 US
ISM N-Mfg PMI
Feb 1900 US
Federal Reserve issues the Beige Book of economic condition