for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

PRECIOUS-Gold slides as dollar firms on bets for 'transitory' inflation

* Gold slips below $1,900/oz

* U.S. CPI rises 0.6% in May

* Palladium on track for weekly decline (Adds comment, updates prices)

June 11 (Reuters) - Gold prices slipped on Friday, pressured by a stronger dollar, with some investors betting on rising U.S. consumer prices being temporary and not affecting the Federal Reserve’s current monetary stimulus.

Spot gold had fallen 0.8% to $1,883.16 per ounce by 1304 GMT. U.S. gold futures were 0.6% lower at $1,885.50.

Inflation has come a little bit on the higher side versus expectations, “but the view remains that these inflation levels will level off from now on,” UBS analyst Giovanni Staunovo said, adding gold is having difficulties sustaining above $1,900.

As long as it has difficulties to stay above that level “there will be some investors using that to sell gold or build up short positions,” Staunovo added.

Data showed U.S. consumer prices rose solidly in May, while jobless claims dropped to their lowest in nearly 15 months last week.

The dollar index rose 0.3%, reducing gold’s appeal for investors holding other currencies.

Meanwhile, the European Central Bank on Thursday kept its monetary policy unchanged and pledged a steady flow of stimulus over the summer.

Focus now shifts to Fed’s June 15-16 policy meeting. A significant number of Fed watchers according to a Reuters poll have said the central bank would wait until later in the year before announcing a taper.

“With next week’s FOMC unlikely to trigger any increased taper focus, the attention will instead turn to Jackson Hole in late August for any announcement about a change in direction,” said Ole Hansen, head of commodity strategy at Saxo Bank in a note.

Silver rose 0.6% to $28.14 per ounce, while platinum fell marginally to $1,150.69.

Palladium was up 0.4% at $2,786.69, but stayed on track for a weekly decline. (Reporting by Arundhati Sarkar and Nishara Karuvalli Pathikkal in Bengaluru; Editing by Elaine Hardcastle, Kirsten Donovan)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up