PRECIOUS-Gold subdued on buoyant dollar; focus on U.S. inflation data
Recasts, updates prices
By Shreyansi Singh
May 11 (Reuters) - Gold prices inched lower on Tuesday as a rebound in dollar dented the metal's appeal, while investors awaited U.S. consumer price data to measure whether inflationary pressure was building.
Spot gold XAU= was down 0.1% at $1,833.00 per ounce by 0721 GMT, after hitting its highest since Feb. 11 at $1,845.06 on Monday.
U.S. gold futures GCv1 fell 0.2% to $1,834.20 per ounce.
"Although gold extended higher earlier today, it's struggling to continue building momentum and part of that is concern about inflation … it isn't a given that those job numbers mean that the Fed won't act," DailyFX currency strategist Ilya Spivak said.
There is significant resistance for gold within the $1,855-$1,875 zone, while support is around the $1,800 level, Spivak said.
Making gold more expensive for holders of other currencies, the dollar index .DXY was up 0.2% after hitting a more than two-month low in the previous session following U.S. non-farm payrolls data on Friday that showed jobs growth unexpectedly slowed in April. USD/ nL1N2MT2XD
Investors are now waiting for the U.S. consumer price index report due on Wednesday to gauge inflationary pressure and the Federal reserve's policy stance.
Fed officials would like to see higher inflation, more wage growth and several months of strong employment gains before they consider adjusting monetary policy, Chicago Fed Bank President Charles Evans said on Monday. nN9N2JM007
Bank of Japan policymakers warned of risks to the country's economic recovery as pandemic curbs weighed on service consumption. nL4N2MY02R
"The scope for further declines (in gold prices) may be modest," HSBC analysts said in a note, adding that a decline in yields offers gold a chance to rally.
Palladium XPD= was up 0.1% at $2,961.52 per ounce, silver XAG= was down 0.1% at $27.29, while platinum XPT= fell 0.4% to $1,241.64.
(Reporting by Shreyansi Singh in Bengaluru; Editing by Subhranshu Sahu and Vinay Dwivedi)