PRECIOUS-Gold tops $1,900/oz for first time since Jan on dovish Fed

    * Markets await U.S. GDP, jobs data 
    * U.S. Treasury yields at two-week low
    * Surprise downside to economic data would be supportive
-analyst

 (Adds comments, updates prices)
    By Arundhati Sarkar
    May 26 (Reuters) - Gold topped $1,900 for the first time
since January on Wednesday, drawing support after U.S. Federal
Reserve officials reiterated their dovish stance.
    Spot gold        rose 0.7% to $1,911.56 per ounce by 1233
GMT, after hitting its highest since Jan. 8 at $1,911.95.
    U.S. gold futures        gained 0.8% to $1,912.30.
    Apart from the recent weakness in U.S. Treasury yields,
factors including dovish Fed commentary to calm speculation
about tightening policy has attracted flows into gold, said Xiao
Fu, head of commodities markets strategy at Bank of China
International.
    Gold seems to be underpinned around $1,900 as the dollar has
been quite weak recently and could provide some safe haven
demand for gold, Fu added.  
    The dollar index        steadied, but was still near its
lowest in about 4-1/2 months, making gold cheaper for holders of
other currencies. U.S. 10-year Treasury yields were also near a
two-week low.      
    Fed vice chair Richard Clarida on Tuesday said the U.S.
central bank could curb an outbreak of inflation should it occur
without throwing the recovery off track.              
    Any surprise to the downside from economic data would also
be gold supportive, BOCI's Fu said.
    Lower interest rates decrease the opportunity cost of
holding non-yielding gold, also considered a hedge against
inflation that could result from widespread stimulus measures.
    U.S. gross domestic product, jobless claims and consumer
spending data is due this week. 
    Further, if a number of central banks continue to buy gold
in the next few months, bullion will have regained an important
demand component, Commerzbank analyst Daniel Briesemann said in
a note.
   "Coupled with the higher consumer demand that is expected and
reviving investment demand, we believe this should lend buoyancy
to the gold price," Briesemann added. 
    Elsewhere, palladium        rose 0.3% to $2,779.67 per
ounce, silver        climbed 0.8% to $28.19 and platinum       
jumped 1.6% to $1,211.02.


 (Reporting by Arundhati Sarkar and Nishara Karuvalli Pathikkal
in Bengaluru; editing by Kirsten Donovan and Jason Neely)