April 19 (Reuters) - Gold prices slid more than 1% Wednesday on higher U.S. yields and the dollar, as some investors bet that a pause to the Federal Reserve's rate hike may take longer than previously thought.
Spot gold was down 1.5% at $1,974.89 per ounce by 1026 GMT, while U.S. gold futures were down 1.7% to $1,984.90.
Benchmark U.S. Treasury yields rose to a near one-month high, pulling the dollar further above one-year lows that, in turn, made gold less affordable for buyers holding other currencies.
The correction was due to the markets readjusting expectations of the Fed's rate-hike path, said Ole Hansen, head of commodity strategy at Saxo Bank, adding gold's rally has only been delayed as the market re-prices when rates would peak.
St. Louis Fed chief James Bullard told Reuters in an interview on Tuesday that the U.S. central bank should continue raising rates as recent data showed inflation remains persistent.
Elsewhere, data showed euro zone inflation eased last month but underlying readings remained stubbornly high, with Britain's inflation being the highest in western Europe, fanning worries of higher rates by the European Central Bank and Bank of England.
Higher interest rates dim the non-yielding bullion's appeal.
A slew of Fed speakers is due to give speeches this week, ahead of a blackout period that starts on the weekend ahead of the central bank's May meeting.
Additionally, gold was trading below its 21-day moving average of around $1,990, which signalled some loss of momentum and triggered some profit-taking, Hansen added.
Silver dropped 1.9% to $24.73 per ounce, platinum was down similarly to $1,062.46 while palladium fell 0.6% to $1,598.45.
