PRECIOUS-Gold slips as Treasury yields, dollar firm on higher inflation prospects

* U.S. producer prices rise more than expected in March
* U.S. economy at an "inflection point", says Powell

(Updates prices)
By Diptendu Lahiri
April 12 (Reuters) - Gold prices fell on Monday, weighed
down by firmer U.S. Treasury yields and dollar after
better-than-expected U.S. economic data lifted prospects for
higher inflation.
Spot gold XAU= fell 0.2% to $1,739.20 per ounce by 0735
GMT. U.S. gold futures GCv1 were down 0.2% to $1,740.50 per
ounce.
"Stronger-than-expected data suggests that inflation (will
be) picking up faster than expected in months to come, which is
leading to a rise in real yields, exerting pressure on gold,"
said Margaret Yang, a strategist at DailyFX.
"Asia Pacific markets were expected to open higher but they
are trading lower this morning, raising demand for safe assets
and the dollar is winning that race, putting further pressure on
gold." MKTS/GLOB
Producer prices in the United States rose more than
anticipated in March, resulting in the highest annual rise in
9-1/2 years and signalling the start of higher inflation as the
economy reopens amid strengthened public health and substantial
government assistance. Some investors view gold as a hedge against higher
inflation, but higher Treasury yields dull some of the appeal of
the non-yielding metal. US/
The dollar index .DXY rose 0.1% against rival currencies,
making gold expensive for buyers outside the United States.
USD/
"For now, gold looks set to trade quietly in a $1,730 to
$1,760 range, with Bitcoin seemingly the safe-haven asset of
choice at the moment," OANDA senior market analyst Jeffrey
Halley said in a note. "In the meantime, gold remains at the mercy of the U.S.
10-year Treasury yield."
Federal Reserve Chairman Jerome Powell said the U.S. economy
is at an "inflection point," with hopes that inflation and
hiring will accelerate in the coming months, but there are
dangers if a hasty reopening leads to a continuing uptick in
coronavirus cases. Elsewhere, silver XAG= fell 0.6% to $25.09 and palladium
XPD= was down 0.4% to $2,628.40. Platinum XPT= slipped 1% to
$1,186.06