(Adds comments and updates prices)
* Expect more downside risk for gold - analyst
* Dollar resumes upward March on higher yields
Oct 18 (Reuters) - Gold prices slipped on Monday, after investors took refuge in the dollar due to rising inflationary pressures and as an uptick in U.S. bond yields added to the downbeat mood.
Spot gold fell 0.2% to $1,764.40 per ounce by 1226 GMT, while U.S. gold futures were little changed at $1,767.60.
Making gold less attractive to holders of other currencies, the dollar index firmed, and U.S. benchmark 10-year Treasury yields extended gains as investors ramped up rate hike bets.
A stronger dollar is "carrying more weight as a safe haven because of the inflation angle, which drives up expectations for the Federal Reserve to start tapering, and even to set the timing to raise interest rates sometime next year," said Ricardo Evangelista, senior analyst at ActivTrades.
While gold is seen as an inflation hedge, it also contends with the greenback for safe-haven status and reduced central bank stimulus and interest rate hikes push government bond yields up, weighing on non-yielding bullion.
"Although gold could catch a stronger bid on the back of rising stagflation fears, the precious metal's upside still has to conquer the fear of rising Treasury yields," said Han Tan, chief market analyst at Exinity.
Market participants are increasingly expecting the Fed to start tapering asset purchases soon after solid increase in U.S. consumer prices.
Bank of England Governor Andrew Bailey, meanwhile, sent a fresh signal that the British central bank is gearing up to raise interest rates for the first time since the onset of the coronavirus crisis as inflation risks mount.
Elsewhere, spot silver fell 0.1% to $23.26 per ounce, platinum was down 1.2% at $1,041.52, and palladium shed 3.3% to $2,005.16.
"The other precious metals are likewise weaker as the new week gets underway. They seem to be more under the influence of gold at present," Commerzbank analyst Daniel Briesemann said in a note. (Reporting by Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber)