* Gold risk lies to the upside in near-term - analyst
* Dollar dips as riskier currencies gain
* Silver rises nearly 3% to over 1-month high (Updates prices)
Oct 20 (Reuters) - Gold prices jumped on Wednesday, after the U.S. dollar weakened, as worries over rising inflation and supply chain issues boosted the safe-haven metal’s appeal.
Spot gold rose 0.9% to $1,785.25 per ounce by 14:00 ET (1800 GMT). U.S. gold futures for December settled up 0.8% at $1,784.90 per ounce.
The dollar dipped, making gold more appealing to holders of foreign currencies.
“There is a global concern on what is going on with supply crunches and the lack of action from the Federal Reserve. It seems like the Fed is behind the ball on inflation,” said Bob Haberkorn, senior market strategist at RJO Futures.
“With supply chain and inflation issues, how will stocks continue to make new highs?” Haberkorn said, adding that “there is a flight to safety into gold that will go on for the next couple of months.”
Fed Governor Christopher Waller said on Tuesday if inflation keeps rising at its current pace in the next few months, policymakers may need to adopt “a more aggressive policy response” next year.
Bullion is often considered an inflation hedge, although reduced stimulus and interest rate hikes push government bond yields up, raising the opportunity cost of holding non-yielding bullion.
Also boosting gold, U.S. benchmark 10-year Treasury yields pulled back after hitting a five-month peak earlier in the session.
StoneX analyst Rhona O’Connell said gold would see a change in range once it breaches the key $1,800 per ounce level, adding that the risk lies to the upside ahead of India’s Diwali festival and with steady demand in China.
Elsewhere, platinum rose 1% to $1,050.50 per ounce. Palladium fell 1.2% to $2,072.71.
Silver rose 2.9% to $24.34 per ounce, having hit its highest in over one month. (Reporting by Amy Caren Daniel and Arundhati Sarkar in Bengaluru; Editing by Ramakrishnan M.)
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