* Dollar hits a more than two-week peak
* Platinum touches lowest level since November 2020
* Palladium hits its lowest level since August 2020 (Recasts, adds comment and updates prices)
Sept 13 (Reuters) – Gold prices nudged up on Monday drawing some support from weaker U.S. bond yields but a resurgent dollar kept the metal on a tight leash as investors awaited U.S. inflation readings later this week.
Spot gold rose 0.1% to $1,788.51 per ounce by 0940 GMT, while U.S. gold futures fell 0.1% to $1,790.00.
Benchmark 10-year U.S treasury yields eased, lowering the opportunity cost for holding non-interest bearing bullion.
Investors are now eying U.S. consumer price data due on Tuesday which could have a bearing on the timeline the Federal Reserve adopts to withdraw its economic support.
The data comes on the heels of comments from several Fed officials that the central bank should begin tapering asset purchases this year.
“Price pressure for gold is still on the rise, but with growth not strong enough to really support a strong amount of tapering, let alone a rate hike in the U.S., the outlook is still positive once we get some momentum back,” Saxo Bank analyst Ole Hansen said.
Bullion has struggled to breakout above its roughly $1,780 to $1,800 range after retreating from about $1,830 hit last week.
IG Market analyst Kyle Rodda said gold was likely to trade between $,1760 and $1,830 in the medium-term, reflecting indecision about the ongoing impact of the coronavirus, economic growth, inflation expectations and monetary policy.
The dollar index hit a more than two-week high, denting gold’s appeal by raising its cost for holders of the metal in other currencies.
Platinum eased 0.7%, to $949.01 after touching its lowest since November 2020.
“Demand for platinum from the auto-industry is slowing even though we’re seeing some signs of demand switching from palladium to platinum on a relative basis, challenging both investment and physical demand,” Saxo’s Hansen said.
Palladium rose 0.4% to $2,148.18, after falling to a trough since August 2020.
Silver dipped 0.3% to $23.64. (Reporting by Nakul Iyer and Eileen Soreng in Bengaluru; Editing by Edmund Blair)