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May 14 Reuters Gold prices rebounded on Tuesday, helped by a pullback in the dollar and Treasury yields after data showed U.S. producer prices rose more than expected in April, suggesting inflation remained high.

Spot gold was up 0.8 at 2,353.81 per ounce by 1709 GMT after dropping 1 on Monday. U.S. gold futures rose 0.7 to 2,359.70.

The dollar is down and I think that39;s giving a bit of a lift to the gold market, said Marex analyst Edward Meir.

The fact that Federal Reserve Chair Jerome Powell was not signaling higher rates was also a positive, and that could have given gold additional boost, Meir added.

U.S. producer prices increased more than expected in April amid strong gains in the costs of services and goods, leading traders to pare back bets of a first rate cut in September.

Gold is seen as a hedge against inflation, but higher interest rates increase the opportunity cost of holding nonyielding bullion.

The dollar fell 0.2 against its rivals after an initial jump following the U.S. data, making gold less expensive for other currency holders. Benchmark 10year Treasury yields also crept lower.

Meanwhile, Fed Chair Jerome Powell said he expects U.S. inflation to continue declining through 2024 as it did last year and noted it was unlikely the Fed would have to raise interest rates again.

Focus now shifts to Wednesday39;s U.S. consumer…