May 17 (Reuters) - Gold prices rose to a three-month high on Monday, as a weaker dollar and a dip in Treasury yields boosted metal's appeal after data last week showed U.S. retail sales unexpectedly stalled in April. FUNDAMENTALS * Spot gold was up 0.1% at $1,844.60 per ounce by 0035 GMT, after hitting its highest since Feb.10 in early Asian trade. * U.S. gold futures rose 0.4% to $1,845.60. * The dollar index slipped from a near one-week high touched last week, making gold less expensive for other currency holders. * Benchmark U.S. 10-year Treasury yields retreated further from a more than one-month high hit last week. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold. * Data on Friday showed U.S. retail sales unexpectedly stalled in April as the boost from stimulus checks faded, but an acceleration is likely in the coming months amid record savings and a reopening economy. * The weak retail sales report curbed rising inflation worries and bets over a sooner-than-expected U.S. Federal Reserve rate hike. * Gold tends to benefit from lower interest rate environment as it reduces the opportunity cost of holding non-yielding bullion. * Dallas Federal Reserve President Robert Kaplan on Friday raised the prospect of a worrisome rise in U.S. inflation expectations, as imbalances between supply and demand for labor and goods put upward pressure on prices. * Asian shares edged cautiously higher on Monday, catching the tailwind from a bounce on Wall Street. * Palladium gained 0.2% to $2,898.24 per ounce, silver eased 0.1% to $27.38 and platinum fell 0.2% to $1,222.04. DATA/EVENTS (GMT) 0200 China Urban Investment (YTD) YY April 0200 China Industrial Output YY April 0200 China Retail Sales YY April 1000 EU Reserve Assets Total April (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)
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