* 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.
"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. 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 (NYSE: JNJ )'s COVID-19 vaccine, analysts said. 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. 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.
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