PRECIOUS-Gold subdued on buoyant dollar; focus on U.S. inflation data

* Dollar stages recovery from over 2-month low hit on Monday
* BOJ warns of risks to recovery prospects at April meeting

(Recasts, updates prices)
By Shreyansi Singh
May 11 (Reuters) - Gold prices inched lower on Tuesday as a
rebound in dollar dented the metal's appeal, while investors
awaited U.S. consumer price data to measure whether inflationary
pressure was building.
Spot gold XAU= was down 0.1% at $1,833.00 per ounce by
0721 GMT, after hitting its highest since Feb. 11 at $1,845.06
on Monday.
U.S. gold futures GCv1 fell 0.2% to $1,834.20 per ounce.
"Although gold extended higher earlier today, it's
struggling to continue building momentum and part of that is
concern about inflation … it isn't a given that those job
numbers mean that the Fed won't act," DailyFX currency
strategist Ilya Spivak said.
There is significant resistance for gold within the
$1,855-$1,875 zone, while support is around the $1,800 level,
Spivak said.
Making gold more expensive for holders of other currencies,
the dollar index .DXY was up 0.2% after hitting a more than
two-month low in the previous session following U.S. non-farm
payrolls data on Friday that showed jobs growth unexpectedly
slowed in April. USD/
Investors are now waiting for the U.S. consumer price index
report due on Wednesday to gauge inflationary pressure and the
Federal reserve's policy stance.
Fed officials would like to see higher inflation, more wage
growth and several months of strong employment gains before they
consider adjusting monetary policy, Chicago Fed Bank President
Charles Evans said on Monday. Bank of Japan policymakers warned of risks to the country's
economic recovery as pandemic curbs weighed on service
consumption. "The scope for further declines (in gold prices) may be
modest," HSBC analysts said in a note, adding that a decline in
yields offers gold a chance to rally.
Palladium XPD= was up 0.1% at $2,961.52 per ounce, silver
XAG= was down 0.1% at $27.29, while platinum XPT= fell 0.4%
to $1,241.64.