* Markets look to U.S. CPI data on Tuesday
* U.S. producer prices hit 9-1/2-year high
* U.S. economy at an "inflection point" - Fed Chair Jerome
Powell
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By Sumita Layek
April 12 (Reuters) - Gold prices eased on Monday as U.S.
Treasury yields remained elevated, denting the appeal of
bullion, while investors waited for this week's key U.S.
inflation and retail sales data.
Spot gold was 0.1% lower at $1,740.90 per ounce by
0950 GMT. U.S. gold futures eased 0.2% to $1,742.10.
As long as yields are relatively high, gold will not
benefit, ABN Amro analyst Georgette Boele said, adding that the
market is now focused on U.S. March Consumer Price Index data
due on Tuesday.
Benchmark U.S. Treasury yields gained after data on Friday
showed U.S. producer prices in March registered their largest
annual gain in 9-1/2 years, likely marking the start of higher
inflation as the economy reopens.
Retail sales data is also due on Thursday.
While gold is considered a shield against inflation, higher
yields have of late threatened that status, since they translate
into a higher opportunity cost of holding bullion.
Federal Reserve Chair Jerome Powell said the U.S. economy is
at an "inflection point," with hopes that inflation and hiring
will accelerate in the coming months.
A new Fed framework builds in allowances for inflation to
run above the central bank's 2% target for a time without the
Fed intervening to rein it in.
StoneX analyst Rhona O'Connell said gold would likely
benefit if inflation became much higher than the target.
"(Although) if we do start seeing inflation accelerating and
people start thinking interest rates are going to go up again,
then gold might struggle a bit."
Among other precious metals, silver fell 0.2% to
$25.18, palladium was down 0.7% at $2,622.19, while
platinum slipped 1% to $1,186.27.
(Reporting by Sumita Layek in Bengaluru; Editing by Kirsten
Donovan)
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