* HSBC says scope of further downside in gold prices ‘modest’ * Silver holds near more than two-month highs hit on Monday (Updates prices) May 11 (Reuters) - Gold prices rose on Tuesday to hover near a three-month high reached in the previous session as the dollar traded near multi-month lows, with investors awaiting U.S. consumer price data to gauge inflation. Spot gold rose 0.2% to $1,839.74 per ounce by 1051 GMT, after hitting its highest since Feb. 11 at $1,845.06 on Monday. U.S. gold futures were up 0.2% to $1,841.20 per ounce. Prices jumped more than 3% last week as the metal surpassed a key psychological level of $1,800 and after weaker-than-anticipated April jobs numbers in the United States. “Investor interest in bullion remains high due to inflation fears and weak U.S. jobs data. Investors are now seeing gold as a hedge against inflation,” said Carlo Alberto De Casa, chief analyst ActivTrades. “Even technically, gold is in a strong positive trend. A clear surpass of $1,840 could open space for further upside towards $1,870.” With investors closely watching for signs of higher prices, the U.S. consumer price index for April, due on Wednesday, will be monitored as investors gauge if the Federal Reserve will begin to alter its stance on inflation. At a time of heavy government stimulus, gold is considered a hedge against potential inflation. Against a basket of its major rivals, the dollar was down 0.1%, holding near a Feb. 25 low hit in the last session. Fed officials would like to see higher inflation, more wage growth and several months of strong employment gains before they consider adjusting monetary policy, Chicago Fed Bank President Charles Evans said on Monday. “The scope for further declines (in gold prices) may be modest,” HSBC analysts said in a note, adding that a decline in yields offers gold a chance to rally. Palladium was up 0.6% at $2,978.94 per ounce, and silver gained 0.6% to $27.46. Platinum edged up 0.1% to $1,247.87. (Reporting by Nallur Sethuraman in Bengaluru; additional reporting by Arundhati Sarkar; Editing by Subhranshu Sahu and Steve Orlofsky) Our Standards: The Thomson Reuters Trust Principles.