* Dollar rise 0.1% against its rivals
* Focus shifts to ECB meeting on Thursday
* Gold likely to struggle to move higher past the $1,800
July 21 (Reuters) - Gold prices eased on Wednesday and were
on track for a second session of declines as a stronger dollar
and rebound in U.S. Treasury yields contended with the metal's
safe-haven status amid worries of a pandemic resurgence.
Spot gold fell 0.3% to $1,805.60 per ounce by 1007
GMT. U.S. gold futures slipped 0.4% to $1,804.30.
"Treasury yields are looking a bit firmer, and (European)
equity markets are a little bit better bid and that's taking the
shine off gold," said CMC Markets UK's chief market analyst
The U.S. dollar neared its year-high and bonds rallied
further on Wednesday, as the rapid spread of the Delta variant
displaced inflation as investors' primary concern.
U.S. benchmark treasury yields have rebounded from an over
5-month low reached the previous session.
Additionally, European stocks rose ahead of the European
Central Bank meeting on Thursday that is expected to convey a
The Delta variant have raised fears that further lockdowns
and other restrictions could upend the worldwide economic
recovery, pushing investors to safe bets.
However, Han Tan, market analyst at Exinity Group, said gold
had been losing out to the dollar in the battle for safe haven
dominance, and spot gold prices were likely to struggle to move
higher past the $1,800 psychological level.
"As long as the greenback remains as the dominant safe
haven, spot gold is expected to remain suppressed."
Meanwhile, investors are also focused on the ECB meeting
where policymakers are expected to chart a new path to reflect a
change in strategy and show the bank is serious about reviving
In other precious metals, silver rose 1% to $25.16
per ounce, palladium gained 1.1% to $2,663.63, and
platinum was up 0.8% at $1,074.95.
(Reporting by Arundhati Sarkar in Bengaluru
Editing by Robert Birsel and Bernadette Baum)