Gold prices rebounded from their lowest in more than a week on Tuesday after data showing a sharp rise in US inflation bolstered gold's appeal as an inflation hedge and weighed on the dollar.

Spot gold was 0.6% higher at $1,742.86 per ounce by 10:47 a.m. EDT (1447 GMT), after dipping to its lowest since April 5 at $1,722.67 earlier. US gold futures rose 0.5% to $1,740.60 per ounce.

"We needed to see some inflation to get gold moving and we saw it this morning with that CPI number," said Bob Haberkorn, senior market strategist at RJO Futures, adding that a weaker dollar and retreating yields supported prices further.

US consumer prices rose by the most in more than 8-1/2 years in March, kicking off what most economists expect will be a brief period of higher inflation. The consumer price index jumped 0.6% last month after rising 0.4% in February.

The US dollar slipped to three-week lows after the data, making gold more appealing for holders of other currencies, while benchmark 10-year Treasury yields also ticked lower.

Further supporting safe-haven gold were concerns after US health officials recommended pausing the use of Johnson & Johnson's COVID-19 vaccine, analysts said.

A close above the $1,750 level would be supportive for gold to try to make a move back toward the $1,800 level, Haberkorn added.

As the world is starting its exit from the COVID-19 crisis, the breadth of central banks purchasing gold could potentially rise substantially considering the massive increase in sovereign debt and the rapid pace of money supply growth in reserve currency countries, TD Securities wrote in a note.

Elsewhere, silver rose 2% to $25.33 per ounce, while palladium was up 0.4% at $2,685.89 per ounce after climbing to its highest since March 18 at $2,710.

Platinum fell 0.7% to $1,161.88 per ounce, having earlier dipped to its lowest in about two weeks at $1,158.