PRECIOUS-Gold slides below $2,000/oz for first time in two months after US inflation data

* U.S. consumer prices rose more than expected in January * U.S. dollar hits three-month peak * Traders bet Fed will not cut rates until June (Updates prices as of 1856 GMT) By Anushree Ashish Mukherjee and Ashitha Shivaprasad Feb 13 (Reuters) - Gold prices fell below the key $2,000 per ounce level to a two-month low on Tuesday, as a stronger-than-expected U.S. inflation report tempered prospects of an early interest rate cut from the Federal Reserve. Spot gold XAU= was down 1.3% at $1,993.29 an ounce by 01:56 p.m. ET (1856 GMT), its lowest since Dec. 13. U.S. gold futures GCcv1 settled 1.3% lower to $2007.2. Data showed U.S. consumer prices increased more than expected in January amid an increase in the costs of shelter and healthcare. "That was not the report that the market wanted to see," said Tai Wong, a New York-based independent metals analyst. "Fed doves are looking for shelter today as surprisingly stubborn inflation has dropped the chances of a May rate cut under 50% for the moment," Wong added. Fed policymakers will probably wait until June before cutting interest rates, traders bet after the U.S. CPI data. Higher interest rates increase the opportunity cost of holding bullion. Following the inflation data, the dollar =USD jumped 0.7% to a three-month high against its rivals, making gold more expensive for holders of other currencies. The U.S. 10-year Treasury yield US10YT=RR also rose. USD/ US/ The CPI print triggered "large-scale Commodity Trade Advisor (CTA) liquidations in gold markets.. but prices would need to revisit the $1,950 per ounce range to spark the next algorithmic selling program," TD Securities wrote in a note. Investors will now focus on retail sales data on Thursday and producer price index (PPI) numbers on Friday. The market will also listen to comments from a slew of Fed officials this week. Several U.S. Fed officials, including Chairman Jerome Powell, said last week they want to see more evidence inflation will continue to decline before cutting rates. Elsewhere, spot platinum XPT= was down 1.9% at $871.99 an ounce, palladium XPD= fell 4.1% to $855.59 and silver XAG= lost 2.8% at $22.05. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Gold price chart https://tmsnrt.rs/3UxQSFQ ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Anushree Mukherjee and Ashitha Shivaprasad in Bengaluru; Editing by Krishna Chandra Eluri and Tasim Zahid) (([email protected];))