Gold edges down as dollar firms

LONDON, Apr 19 (Reuters): 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 per cent at $1,976.18 per ounce as of 0947 GMT. US gold futures slipped 0.4 per cent 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 US Treasury yields and expectations that the Federal Reserve will tighten its monetary policy.

"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 US 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 per cent by the end of the year to rein in 40-year-high inflation readings.