(Corrects time in the first bullet to 0104 GMT from 1004 GMT) June 21 (Reuters) - Gold prices firmed on Monday, after posting a 6% drop last week, as a retreat in U.S. Treasury yields boosted the allure of the non-yielding metal. FUNDAMENTALS * Spot gold was up 0.5% at $1,772.34 per ounce, as of 0104 GMT. Last week, bullion prices posted their worst week since March 2020 on the U.S. Federal Reserve’s hawkish outlook. * U.S. gold futures edged 0.2% higher to $1,772 per ounce. * The benchmark U.S. Treasury yields fell to their lowest since March 3, reducing the opportunity cost of holding bullion, which pays no return. * The U.S. dollar held near multi-month peaks against other major currencies on Monday, after the Fed surprised markets last week by signalling it would raise interest rates and end emergency bond-buying sooner than expected. * Minneapolis Federal Reserve President Neel Kashkari said on Friday he wants to keep the U.S. central bank’s benchmark short-term interest rate near zero at least through the end of 2023 to allow the labour market to return to its pre-pandemic strength. * SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 1.1% to 1,053.06 tonnes on Friday from 1,041.99 tonnes on Thursday. * Gold purchases in India ticked up last week after a decline in local rates, although dealers cautioned that demand is unlikely to return to normal levels soon. * Russia’s gold reserves stood at 73.7 million troy ounces, as of the beginning of June, the central bank said on Friday. * Silver was up 0.6% at $25.95 per ounce, palladium climbed 1% to $2,490.93, while platinum rose 0.4% to $1,037.89. (Reporting by Eileen Soreng in Bengaluru, Editing by Sherry Jacob-Phillips) Our Standards: The Thomson Reuters Trust Principles.