PRECIOUS-Gold gains ground on strong U.S. inflation data, weaker dollar

* Platinum hits two-week low
* Palladium rises to near one-month high
* U.S. CPI rises 2.6% on year-on-year basis

(Updates prices)
By Shreyansi Singh
April 13 (Reuters) - Gold prices bounced off a more than
one-week low on Tuesday after data showing a sharp rise in U.S.
inflation bolstered bullion's appeal as an inflation hedge and
weighed on the dollar.
Spot gold XAU= climbed 0.8% to $1,745.94 per ounce by 1:42
p.m. EDT (1742 GMT), after earlier dipping to $1,722.67, its
lowest mark since April 5. U.S. gold futures GCv1 settled up
0.9% at $1,747.6.
"We needed to see some inflation to get gold moving and we
saw it this morning with that CPI number," said Bob Haberkorn,
senior market strategist at RJO Futures, adding that a weaker
dollar and retreating yields supported prices further.
U.S. consumer prices rose by the most in more than 8-1/2
years in March, kicking off what most economists expect will be
a brief period of higher inflation. The U.S. dollar slipped to three-week lows after the data,
making gold cheaper for holders of other currencies, while
benchmark 10-year Treasury yields also eased. US/ USD/
Further supporting safe-haven gold were concerns raised by
U.S. health officials' decision to recommend a pause in the use
of Johnson & Johnson's COVID-19 vaccine, analysts said.
"At the moment, we need to see a decisive breakout above
$1,765 in order to spark another wave of buying up to $1,800,"
said Phillip Streible, chief market strategist at Blue Line
Futures in Chicago.
"The $1,750 level has been a strong resistance, so we're
getting up near that level," he said, adding that geopolitical
risk tied to news of Iran stepping up its nuclear enrichment had
also sparked a lot of buying of gold and silver. Among other precious metals, silver XAG= rose 2% to $25.34
per ounce.
Palladium XPD= gained 0.7% to $2,695.58 after climbing to
its highest level since March 18 at $2,710.
Platinum XPT= fell 0.9% to $1,158.98 per ounce, having
earlier dipped to its lowest price in two weeks at $1,151.86.