* Benchmark 10-year Treasury yields near a more than

one-year high

* Brent crude oil prices hold above $110 a barrel

* Minutes of Fed's April policy meeting due on Wednesday

(Updates for U.S. market close)

By Anjana Anil

May 19 (Reuters) - Gold prices fell by more than 1% on

Tuesday on a firmer U.S. dollar and as persistent inflation

fears kept interest rate hike expectations and Treasury yields

high.

Spot gold was down 1.4% at $4,503.98 per ounce by

1:45 p.m. ET (1745 GMT). Prices fell to their lowest level since

March 30 earlier in the session.

U.S. gold futures for June delivery settled 1% lower

at $4,511.20.

"We are seeing a multi-country rise in real rates around the

world, and that is really weighing mostly on gold. The dollar is

also stronger, that's a negative," said Edward Meir, an analyst

at Marex.

Benchmark 10-year U.S. Treasury yields were near

a more than one-year high, while the U.S. dollar strengthened.

Both rose as investors eyed a possible hawkish shift by the

Federal Reserve to curb energy-driven inflation.

Higher Treasury yields raise the opportunity cost of holding

non-yielding gold and a stronger dollar makes greenback-priced

commodities more expensive for other currency-holders.

Brent crude oil prices were elevated on supply concerns,

fanning concerns of rising global inflation as fuel costs surge.

Soaring inflation forces central banks to keep rates high to

ease price pressures.

Despite being an inflation hedge, gold usually comes under

pressure in high interest rate environments.

Markets now see very limited scope for rate cuts through

most of 2026, with expectations shifting toward no change or

tightening later in the year.

"While the structural investment case for gold remains

largely intact, shorter-term macro developments have created a

more challenging backdrop for prices," Ole Hansen, head of

commodity strategy at Saxo Bank, wrote.

"Once immediate energy-related pressures begin to ease,

central bank demand may re-emerge as a more dominant

driver."

Market participants await minutes of the Fed's latest policy

meeting, due on Wednesday.

Spot silver dipped 4.1% to $74.53 per ounce, after

touching an around two-week low earlier in the session. Platinum

lost 2.2% to $1,936.10 and palladium dropped 4.2%

to $1,359.26.

J.P. Morgan on Sunday forecast $2,400/oz in the fourth

quarter of 2026 for platinum, and added that it sees palladium

at $1,600/oz in the same period.