*

Bullion hit all-time high of $2,431.29 per ounce on Friday

*

10-year Treasury yields are close to a five-month high

*

Market prices in 68% chance of rate cut in September - CME

(Recasts, adds analyst comment and updates prices, as of 0337

GMT)

By Sherin Elizabeth Varghese

April 17 (Reuters) - Gold prices were steady on

Wednesday after rallying to record highs last week, as

safe-haven demand fuelled by geopolitical risks in the Middle

East partially offset pressure from higher U.S. dollar and

Treasury yields.

Spot gold held its ground at $2,381.68 per ounce, as

of 0337 GMT, after hitting an all-time high of $2,431.29 on

Friday. U.S. gold futures fell 0.4% at $2,397.70.

The dollar held steady near a five-month peak,

making the greenback-priced bullion less attractive for other

currency holders. Benchmark U.S. 10-year Treasury yields

were at 4.6591%, hovering near a five-month high hit

in the previous session.

"Gold prices have been displaying resilience in the face of

higher Treasury yields and a stronger U.S. dollar, while finding

some support in safe-haven flows in light of brewing

geopolitical risks, with market participants still on edge for

Israel's response to Iran's attacks," said IG market strategist

Yeap Jun Rong.

Any escalation in geopolitical tensions could potentially

pave the way for prices to retest its all-time high levels, Jun

Rong said.

Top U.S. central bank officials including Federal Reserve

Chair Jerome Powell backed away from providing any guidance on

when interest rates may be cut, saying instead that monetary

policy needs to be restrictive for longer.

Data out of U.S. has stirred questions on the prospects of

rate cuts this year, with several global brokerages having

pushed back their expectations of the U.S. Federal Reserve

starting to lower interest rates to September from June.

Market is pricing in a 68% chance of a rate cut in

September, according to the CME FedWatch Tool.

Lower interest rates boost the appeal of holding

non-yielding bullion.

Spot silver rose 0.3% to $28.16 per ounce, platinum

fell 0.3% at $953.75 and palladium was up 0.4% at

$1,017.58.