* U.S. stock indexes close at record high
* Gold hits $1,435.99/oz, highest since June 25
* Palladium hits more than three-month peak
* SPDR Gold holdings fell 0.2% on Tuesday (Updates prices)By Diptendu LahiriJuly 3 (Reuters) - Gold steadied on Wednesday, paringearlier gains as a rally in equities reduced the attraction ofthe non-yielding metal, while global growth concerns andprospects for dovish monetary policy kept bullion supported.Spot gold was steady at $1,416.98 per ounce as of1:33 p.m. EDT (1733 GMT), after earlier touching $1,435.99, itshighest level since June 25.
U.S. gold futures settled about 1% higher at$1,420.90 per ounce.Wall Street stocks rose on Wednesday, with each of the majorindexes closing at a record high, as expectations grew that theU.S. Federal Reserve would take a more dovish turn as a raft ofdata provided more evidence of a slowing economy. The yellow metal reversed course briefly after U.S. marketsopened, but later steadied."Gold has had quite a strong performance in the last twodays and this fall is just an ebb in the flow," said DanielGhali, commodity strategist at TD Securities.The case for gold - which last week hit a six-year high at$1,438.63 per ounce - is still positive, analysts said, drivenby a dovish outlook from major central banks and an escalationof tensions between the United States and Iran.European Union leaders nominated IMF chief Christine Lagardeas Mario Draghi's replacement at the helm of the EuropeanCentral Bank after marathon talks that have exposed deepdivisions in the bloc. "German 10-year Bund yields were at record lows and the U.S. benchmark yields are also falling on government monetarypolicy, giving the equity markets a boost and taking awayinvestor interest from gold," said Jim Wyckoff, senior analystat Kitco.com.U.S. Treasury yields fell on Wednesday with yields on U.S.benchmark 10-year Treasury notes hitting their lowest in over2-1/2 years as euro zone yields tumbled on record lows on betsthe European Central Bank's next chief would stay a dovishcourse to help the euro zone economy. Government yields around the world were also pressured afterBank of England Governor Mark Carney flagged uncertainties overBrexit and trade conflicts that prompted speculation the centralbank may lower interest rates.On the technical front, gold will find support at Tuesday'sclose, around $1,418, and could find resistance around $1,440,TD Securities' Ghali added.Holdings of the SPDR Gold Trust have gained more than5% over the past one month. Silver was slightly lower at $15.30 per ounce. Theprecious metal is unlikely to follow gold's upward trajectory,analysts said. Platinum climbed 1.3% to $838.50 per ounce, whilepalladium rose 0.8% to $1,570.27, hovering near athree-month peak of $1,572.50 touched earlier in the session.
(Reporting by Diptendu Lahiri in Bengaluru; editing by GCrosse)