* Markets look to U.S. CPI data on Tuesday
* U.S. producer prices hit 9-1/2-year high
* U.S. economy at "inflection point", says Fed Chair
(Updates prices)
By Sumita Layek
April 12 (Reuters) - Gold prices eased on Monday as U.S. Treasury yields remained elevated, denting the appeal of bullion, while investors waited for this week's key U.S. inflation and retail sales data.
Spot gold XAU= was 0.1% down at $1,741.80 an ounce by 1147 GMT. U.S. gold futures GCv1 eased 0.1% to $1,743.50.
As long as yields are relatively high, gold will not benefit, said ABN Amro analyst Georgette Boele, adding that the market is now focused on U.S. March Consumer Price Index data due on Tuesday.
Benchmark U.S. Treasury yields gained after data on Friday showed U.S. producer prices in March registered their largest annual gain in 9-1/2 years, likely marking the start of higher inflation as the economy reopens. US/ USD/
Retail sales data is also due on Thursday. gold is considered a shield against inflation, higher yields threaten that status because they translate into a higher opportunity cost of holding bullion.
Federal Reserve Chair Jerome Powell said the U.S. economy is at an "inflection point", with hopes that inflation and hiring will accelerate in the coming months.
A new Fed framework builds in allowances for inflation to run above the central bank's 2% target for a time without the Fed intervening. analyst Rhona O'Connell said gold is likely to benefit if inflation rises much higher than the target.
"(Although) if we do start seeing inflation accelerating and people start thinking interest rates are going to go up again, then gold might struggle a bit."
Among other precious metals, silver XAG= fell 0.2% to $25.20, palladium XPD= was down 0.5% at $2,626.65 and platinum XPT= slipped 1.1% to $1,185.56.