PRECIOUS-Gold tops $1,900/oz as dollar weakens, inflation jitters persist

    * Dollar wallows at multi-month lows 
    * Platinum, palladium up more than 1%
    * U.S. Treasury yields at two-week low

 (Updates prices)
    By Brijesh Patel
    May 26 (Reuters) - Gold prices rose above the key
psychological level of $1,900 per ounce on Wednesday, helped by
a weaker dollar and growing inflation concerns after Federal
Reserve officials maintained a dovish stance over rates.
    Spot gold        was up 0.3% to $1,904.50 per ounce by 0647
GMT, its highest level since Jan. 8.
    U.S. gold futures        gained 0.4% to $1,905.40 per ounce.
    "A weaker dollar is helping and growing inflation risks are
outweighing everything right now. This is about hedge against
inflation right now," said Stephen Innes, managing partner at
SPI Asset Management.
    "Even if inflation is high, they're (the Fed) going to be
very, very dovish. What really matters for gold is front-end
real rates. The Feds will continue to keep front-end rates low,
which is going to weaken the dollar and gold is going to do
quite well."
    The dollar index        was pinned near a 4-1/2-month low
against its rivals, making gold cheaper for other currency
    Benchmark U.S. Treasury yields were hovering near a two-week
low, reducing the opportunity cost of holding non-interest
bearing gold.      
    Gold, often used as a hedge against inflation, has benefited
from recent data showing a rise in prices in the United States
and the United Kingdom.
    Richard Clarida, the Fed's vice chair, said on Tuesday the
U.S. central bank could curb any possible outbreak of inflation
without throwing the economic recovery off track.             
    Investors now await key U.S. economic data due later this
week, including gross domestic product, jobless claims and
consumer spending. 
    Meanwhile, U.S. Senate Republicans plan to unveil a
counteroffer to President Joe Biden's $1.7 trillion
infrastructure proposal on Thursday, though one of their leaders
said on Tuesday the two sides remained far apart.             
    Elsewhere, palladium        rose 1.1% to $2,801.20 per
ounce, silver        climbed 0.4% to $28.09 and platinum       
jumped 1% to $1,203.99.  

 (Reporting by Brijesh Patel in Bengaluru; editing by Subhranshu
Sahu and Jason Neely)