PRECIOUS-Gold hits 1-week low as U.S. bond yields, dollar climb

* U.S. consumer prices post largest gain since 2009
* 10-year Treasury yields climb to over 1-month high
* Focus now on U.S. jobless claims, retail sales data
* Russia's Nornickel resumes full operations at Oktyabrsky
mine

(Updates prices, adds detail)
By Brijesh Patel
May 13 (Reuters) - Gold touched a one-week low on Thursday,
as U.S. Treasury yields rose and the dollar firmed after a
bigger-than-expected rise in U.S. consumer prices boosted bets
for early interest rate hikes.
Spot gold XAU= was down 0.1% at $1,814.47 per ounce by
1108 GMT, after falling to its lowest since May 6 at $1,811.74
earlier in the session.
U.S. gold futures GCv1 fell 0.5% to $1,814.40.
"The real yields continue to rise and there is speculation
in the market that there would be a surprise tightening by the
Federal Reserve," said Xiao Fu, head of commodities markets
strategy at Bank of China International.
Benchmark U.S. 10-year Treasury yields US10YT=RR jumped to
their highest in more than a month, while the dollar index
.DXY rose 0.1% versus rivals. US/
Data on Wednesday showing U.S. consumer prices jumped the
most in nearly 12 years in April, intensified concerns over
rising inflation and possible interest rate hikes. High interest rates increase the opportunity cost of holding
non-yielding bullion.
However, the Fed has pledged to keep interest rates low
until the economy reaches full employment, and inflation hits 2%
and is on track to "moderately" exceed that level for some time.
Investor now await the U.S. jobless claims report later in
the day and retail sales data on Friday.
"The Fed is probably quite focused on unemployment as a
reason for keeping the narrative dovish," Nicholas Frappell,
global general manager at ABC Bullion, said.
"Given the Flexible Average Inflation target, there's
awareness that the Fed can allow for some inflationary room."
Elsewhere, palladium XPD= fell 1.8% to $2,805.95 per
ounce, extending declines after top producer Nornickel said it
resumed full operations at one of its two mines hit by flooding
this year. Silver XAG= was down 0.8% at $26.81, while platinum
XPT= dropped 0.6% to $1,202.81.