PRECIOUS-Gold slips on firm yields, dollar ahead of U.S. inflation data

* U.S. 10-year Treasury yields hit over 1-week high
* U.S. consumer price data due at 1230 GMT
* Silver below multi-month highs hit early this week

(Updates prices)
By Sethuraman N R
May 12 (Reuters) - Gold prices fell on Wednesday, on track
to snap a five-session winning streak, weighed down by a firmer
dollar and U.S. Treasury yields ahead of U.S. consumer price
data.
Spot gold XAU= was down 0.1% to $1,834.46 per ounce by
1044 GMT. U.S. gold futures GCv1 fell 0.1% to $1,835.10.
The much-anticipated U.S. consumer price data is forecast to
show a 3.6% lift in year-on-year prices.
"If the inflation comes in stronger, that's going to
increase fears over a quicker than expected policy tightening
from the Federal Reserve. That could cause yields to rise and
increase the opportunity cost of holding gold," said Fawad
Razaqzada, market analyst with ThinkMarkets.
"Whereas, if the numbers come in weaker then we may see gold
rise to $1,850, which is a key level of resistance from where we
also have the 200-day moving average come into play."
Higher inflation will likely add pressure on the Fed to
bring forward rate rises, and weigh on gold, which bears no
interest.
Some investors view gold as a hedge against higher inflation
that could follow stimulus measures, but higher Treasury yields
have weighed on non-yielding bullion's appeal this year.
Benchmark U.S. 10-year Treasury yields US10YT=RR scaled a
more than one-week peak. US/
"Gold has been under pressure by rising real rates in the
past six months. That said, while there is uncertainty over the
Fed's appetite to let nominal rates increase, a pick-up of
inflation will likely bring new buyers into the market," BofA
said in a research note.
Palladium XPD= was unchanged at $2,937.22. Silver XAG=
fell 0.9% to $27.38 per ounce while platinum XPT= rose 0.1% to
$1,236.57.