(Adds analyst comment and updates prices)
* Gold heads for worst week since mid-June
* U.S. 10-year Treasury yields drop to 2-week low
* Palladium drops as much as 8%; platinum as much as 4%
Nov 26 (Reuters) - Gold steadied on Friday, taking a
breather after an over 1% rally sparked by a rush into
safe-havens as concerns over a new coronavirus variant rattled
Spot gold rose 0.2% to $1,791.97 per ounce by 1349
p.m. ET (1849 GMT), after going up as high as $1,815.26. U.S.
gold futures settled 0.1% higher at $1,785.5.
Authorities globally reacted with alarm to the virus
variant, with the EU and Britain among those tightening border
controls as researchers sought to establish out if the mutation
was vaccine-resistant, triggering a selloff across markets that
seeped into oil and other precious metals.
But after the rally due to bullion's safe-haven appeal, the
overall bearish turn in commodities eventually claimed gold as
well, said Jim Wyckoff, senior analyst at Kitco Metals, adding
the market reaction was probably overblown.
Supporting gold and even capping the eventual retreat, was a
sharp pullback in the dollar and lower U.S. Treasury
"Gold price should remain supported in this environment and
the topic of (Fed) tapering should take a back seat for the time
being," said Alexander Zumpfe, a precious metals dealer at
Gold was still headed for its worst week since mid June,
down 2.9% so far, pressured by expectations that the U.S.
Federal Reserve could hasten interest rate rises, raising the
opportunity cost of holding non-interest-bearing bullion.
Other precious metals, meanwhile, seemed to have decoupled
from gold's moves, with silver dipping 1.9% to $23.14.
Platinum fell 4.3% to $952.77 while palladium
dropped 6% to $1,747.95, en route to big weekly declines.
Palladium earlier slid over 8% to its lowest since March 23,
Quantitative Commodity Research analyst Peter Fertig
attributed palladium and platinum's declines to fears the new
variant could hurt the economy again, including car sales and
demand for the metals used in automobile exhaust systems.
(Reporting by Asha Sistla and Nakul Iyer in Bengaluru; Editing
by Susan Fenton and Krishna Chandra Eluri)