(Adds comments, updates prices) * Biden unveils $2 trillion-plus job plan * U.S. weekly jobless claims rise unexpectedly By Shreyansi Singh April 1 (Reuters) - Gold rose over 1% on Thursday buoyed by a retreat in the dollar and U.S. bond yields, while grim U.S. jobless data clouded the outlook for an economic recovery, adding to the metal"s safe-haven appeal. Spot gold rose 1.2% to $1,727.86 per ounce by 1:39 p.m EDT (1739 GMT). Most markets will be closed for Good Friday on April 2. U.S. gold futures settled up 0.7% at $1,728.30. "This is an upward correction in a structured bear market," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago, adding gold could climb to $1,740 before yields resume its uptrend to push gold back down again. The dollar index retreated from Wednesday"s five-month peak, making gold less expensive for other currency holders. Benchmark U.S. Treasury yields also eased. Also bolstering safe-haven gold"s appeal, data showed the number of Americans filing new claims for unemployment benefits rose unexpectedly last week. U.S. President Joe Biden"s announcement of a long-awaited $2 trillion-plus job plan on Wednesday which has raised concerns over inflation, also supported the metal. While gold is considered a hedge against inflation, higher bond yields have threatened that status as they increase the bullion"s opportunity cost. "A retreat in yields, as inflation pressures recede holds out the possibility of a recovery in gold prices," James Steel, chief precious metals analyst at HSBC wrote in a note. On the physical demand front, India"s gold imports in March surged to a record 160 tonnes, a government source told Reuters. Among other precious metals, silver was up 2.1% at $24.89 per ounce, while platinum gained 1.8% to $1,208.42 and palladium rose 1.3% to $2,651.79. The closure of Russian palladium producer Nornickel"s two Siberian mines has aggravated an already severely tight palladium market, ED&F Man Capital Markets analyst Edward Meir said, adding the metal could climb further. (Reporting by Shreyansi Singh and Nakul Iyer in Bengaluru Editing by Alistair Bell and Marguerita Choy)