April 11 (Reuters) - Gold advanced on Tuesday as the dollar gave up some of its gains as European markets reopened after Easter, while traders positioned for more economic data for clues on the global rate-hike path.
Spot gold was up 0.5% to $1,999.47 per ounce by 1245 GMT while U.S. gold futures had gained 0.5% to $2,014.60.
Investors are awaiting a U.S. inflation report on Wednesday to assess the Federal Reserve's next steps after a strong labour market report following the banking sector turmoil in March.
"U.S. real rates remain an important driver for gold, but if the Fed hikes end, and eventually U.S. rates tend lower, then it should weaken the USD and help gold as well," UBS analyst Giovanni Staunovo said.
A tight U.S. labour market report on Friday led to gold shedding 1% on Monday and raised bets on an interest rate hike by the Fed, with the probability of a 25 basis-point increase now pegged at 72%.
Chicago Federal Reserve President Austan Goolsbee, Minneapolis Fed President Neel Kashkari, and Philadelphia Fed chief Patrick Harker are all scheduled to speak on Tuesday.
Although gold is traditionally considered a hedge against inflation, higher interest rates implemented to rein in rising price pressures hurts the appeal of zero-yield bullion.
Euro zone investors await a week full of economic data as well, including retail sales for February and March inflation readings for Germany.
Core inflation in the euro zone is likely to stay high for the rest of 2023, ECB policymaker Pablo Hernandez de Cos said on Monday, leaving the door open for further rate hikes.
In Asia, top bullion consumer China saw consumer inflation hit an 18-month low as demand stayed weak, highlighting the uneven global economic recovery.
Silver was up 0.1% to $24.93 per ounce, platinum up 0.7% to $998.30 while palladium jumped 2.1% to $1,441.23.
