* Focus on U.S. payrolls data on Friday
* Silver hits two-week high
* Spot gold may rise into $1,932-$1,953/oz range- technicals
June 1 (Reuters) - Gold steadied near a 5-month peak on
Tuesday, buoyed by a subdued dollar as focus turned to key U.S.
economic data due later this week.
Spot gold was up 0.05% at $1,908.81 per ounce at 1237
GMT, having earlier touched its highest since Jan. 8 at
U.S. gold futures were up 0.3% at $1,911.70.
"It is quite clear from Friday's (consumer price) data that
there are ongoing concerns about inflation emerging. This is all
part of a developing story, and one which would develop very
much in the second half of this year," independent analyst Ross
The dollar index shed 0.2% against rivals, making
bullion cheaper for those holding other currencies.
Keeping gold's advance in check was a slight uptick in U.S.
Treasury yields, translating into higher opportunity cost of
holding non-yielding bullion.
"However, this (higher yields) is unlikely to weigh on gold
for any prolonged period so long as yields remain below the rate
of inflation. We therefore expect the price to climb to $2,000
per troy ounce by year's end," Commerzbank analyst Carsten
Fritsch said in a note.
Gold, considered a hedge against inflation that could be
triggered by widespread money printing by central banks to aid
economic revival, recorded its best month of the year in May,
supported in part by concerns about inflation.
Investors now await key U.S. economic readings, with the
main event of U.S. payrolls figures due on Friday.
Spot gold may rise into a $1,932-$1,953 range, Reuters
technical analyst Wang Tao said.
Silver was up nearly 1% at $28.32 per ounce.
Palladium fell 0.2% to $2,824.54, while platinum
fell 0.8% to $1,177.46.
"The disappointing performance of the platinum price
recently is also reflected in ETF demand. In contrast to gold,
platinum has registered ETF outflows of late," Fritsch added.
(Reporting by Nishara Karuvalli Pathikkal, Arundhati Sarkar in
Bengaluru; Editing by Aditya Soni and Nick Macfie)