April 13 (Reuters) - Gold prices fell to their lowest in more than a week on Tuesday after the metal's appeal was dented by higher Treasury yields and as investors awaited U.S. inflation data.

Spot gold was 0.2% lower at $1,729 per ounce by 1200 GMT, having earlier dipped to its lowest since April 5 at $1,722.67. U.S. gold futures eased 0.2% at $1,729.70.

"We're trading a little bit softer after the Treasury auctions yesterday in the U.S. helped drive yields a tab higher," Saxo Bank analyst Ole Hansen said.

Benchmark 10-year Treasury yields scaled an one-week peak, increasing the opportunity cost of holding gold, which pays no interest, while the dollar also firmed. Investors are await the U.S. Consumer Price Index (CPI) data for March at 1230 GMT.

A Reuters survey expects CPI to rise 2.5% year-over-year in March. "The big question is really whether these high inflation numbers are going to stick around... I think they will and eventually will be the reason why we will see a recovery in gold and other precious metals," Hansen added.

Bullion is used as a hedge against inflation. Boston Federal Reserve Bank President Eric Rosengren said on Monday it was unlikely the economy would overheat this year, and the Fed had the tools to counter any surprise jumps in inflation. "Even though several strong voices from the Fed have vowed to tolerate inflation and keep rates down till the economy rebounds to satisfactory levels, the market thinks the central bank will have to taper as early as the beginning of 2022," IG Market analyst Kyle Rodda said.

Elsewhere, silver rose 0.5% to $24.97 per ounce, while palladium was up 1% at $2,702.74 after climbing to its highest since March 18 at $2,710. Platinum shed 0.2% to $1,168.30, having earlier fallen to its lowest in about two weeks at $1,160.50.