April 25 (Reuters) - Gold prices slipped on Tuesday as a stronger dollar countered support from lower Treasury yields, while investors awaited a slew of U.S. economic data due later this week that could sway the Federal Reserve's interest rate-hike stance.
Spot gold ticked 0.1% lower to $1,986.04 per ounce by 9:55 a.m. EDT (1355 GMT), while U.S. gold futures fell 0.2% to $1,996.80.
The dollar rose 0.4%, making bullion more expensive for buyers holding other currencies, while benchmark 10-year Treasury yields fell.
"The Fed would do its best to try and hold rates higher in order to quell inflation but that likely means that it might be a constraint on the economy growing as quickly," said Everett Millman, chief market analyst at Gainesville Coins.
"No matter what decision they have to make, it's probably going to result in some type of stress, and that looming uncertainty is certainly what gold is going to be sensitive to."
The U.S. consumer confidence index fell to 101.3 in April, down from 104 last month and below market expectations for 104.
The core personal consumption expenditures (PCE) index, the Fed's favored inflation gauge, is due on Friday, while quarterly gross domestic product data is scheduled for Thursday.
Markets see an 84% chance of a 25-basis point rate hike at the Fed's May 2-3 meeting.
While gold is considered a safe haven during economic uncertainties, higher interest rates dull the non-yielding metal's shine.
Traders also took stock of U.S. Treasury Secretary Janet Yellen's warning that failure by Congress to raise the government's debt ceiling would trigger an "economic catastrophe" that would send interest rates higher for years to come.
Top gold consumer China reported higher domestic production in the first quarter, partly spurred by higher safe-haven demand.
Silver fell 1.7% to $24.74 per ounce, platinum shed 0.5% to $1,076.54 and palladium lost 2.8% to $1,492.63.
