 "gold")
Gold prices ticked lower on Tuesday from more than a month high as the dollar strengthened, though bullion's appeal as a safe-haven and an inflation hedge capped declines amid concerns over the Ukraine war and a spike in consumer prices.
Spot gold was down 0.1% at $1,976.18 per ounce as of 0947 GMT. U.S. gold futures slipped 0.4% to $1,979.
Gold is trading below $1,998.10, a more than one-month high hit on Monday, as the dollar index scaled an over two-year peak on elevated U.S. Treasury yields and expectations that the Federal Reserve will tighten its monetary policy. [USD/]
"We are a little bit surprised that gold is holding on its own given the firm dollar, high bond yields and all the noise coming from the U.S. Fed regarding higher interest rate hikes," Commerzbank analyst Daniel Briesemann said.
Gold is still living up to its reputation as a safe-haven due to the Ukraine war and is also in demand as a store of value given the high inflation in many parts of the world, Briesemann added.
St. Louis Fed President James Bullard on Monday repeated his case for increasing interest rates to 3.5% by the end of the year to rein in 40-year-high inflation readings.
While bullion is considered a safe store of value during times of political and economic crises, as well as a hedge against inflation, a firmer dollar makes greenback-priced gold more expensive for other currency holders.
"Gold has the ability to overcome the U.S. dollar strength and break above $2,000 possibly over the next week or so," said City Index's senior market analyst Matt Simpson.
Spot silver fell 0.2% to $25.80 per ounce, platinum eased 0.1% to $1,009.75 and palladium dropped 2.3% to $2,383.37.
(Reporting by Eileen Soreng and Bharat Govind Gautam in Bengaluru; Editing by Vinay Dwivedi)
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