* Dollar eases off 2018 peak after U.S. data
* Rising U.S. Treasury yields also pressure gold
* Spot gold may revisit May 1 low $1,301.51/oz -technicals (New throughout, updates prices, market activity and comments;adds second byline and NEW YORK dateline)By Renita D. Young and Eric OnstadNEW YORK/LONDON, May 9 (Reuters) - Gold prices dipped onWednesday as safe-haven buying failed to kick in after theUnited States withdrew from the Iranian nuclear accord, and asrising U.S. Treasury yields added pressure.Dismayed European allies sought to salvage the internationalnuclear pact with Iran after U.S. President Donald Trump pulledWashington out of the landmark accord, reached in 2015 before hetook office. "The fact that the cat is out of the bag and we have theannouncement (on Iran) - that has removed some of thegeopolitical support for gold," said Ole Hansen, head ofcommodity strategy at Saxo Bank in Copenhagen.Gold prices often rise during times of political turmoil, asbullion is widely considered a safe-haven asset alongside thedollar and the Japanese yen.Also weighing on gold, geopolitical tensions in the Koreanpeninsula eased further as North Korea freed three Americandetainees ahead of talks between Trump and North Korea leaderKim Jong Un. Spot gold lost 0.1 percent at $1,312.89 an ounce by1:33 p.m. EDT (1733 GMT), after touching a one-week low of$1,304.11.
U.S. gold futures for June delivery settled down 70cents, or 0.05 percent, at $1,313 per ounce.
The dollar index rose to a 2018 peak, then went intonegative territory after U.S. producer prices rose less thanexpected.Yields on the benchmark 10-year Treasury note breached 3 percent. A series of U.S. bond auctions this weekcould boost yields further, which could pressure gold enough tochallenge the $1,300 support area, Hansen added.The prospect of more U.S. interest rate increases will alsoweigh on gold, Standard Chartered analyst Suki Cooper said."We continue to expect prices to test the downside in thelead-up to the June FOMC meeting as the market re-prices the Fedhiking trajectory," she said in a note.
Spot gold may revisit its May 1 low of $1,301.51 per ounceas it failed three times to break resistance at $1,317, saidReuters technical analyst Wang Tao. However, a four-year high in oil prices may stoke inflation. "If we start to see any sign that inflation will spike,that'll drive gold higher," said Chris Gaffney, president ofworld markets at EverBank.
Silver rose 0.6 percent at $16.53 an ounce. Duringthe session it reached $16.62, a two-week high.
Platinum rose 0.8 percent to $912.74 an ounce.Palladium added 0.6 percent to $975.50. It hit $982.60,close to a two-week high. (Reporting by Renita D. Young and Eric Onstad; Editing by DavidGregorio and Mark Heinrich)
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