* Markets await U.S. GDP, jobs data * U.S. Treasury yields, dollar ticks up * Fed can tame inflation without wrecking recovery -Clarida (Recasts, adds analyst comment, updates prices) By Sumita Layek May 26 (Reuters) - Gold fell below the key $1,900 per ounce level on Wednesday, as a rebounding dollar and U.S. Treasury yields dimmed its appeal, although continued expectations of a dovish stance from U.S. Federal Reserve kept its losses limited. Spot gold was 0.3% lower at $1,893.20 per ounce by 2:14 p.m. EDT (1814 GMT), having earlier hit its highest since Jan. 8 at $1,912.50. U.S. gold futures settled up 0.2% at $1,901.20 per ounce. The rise in U.S. yields and the dollar strength gave some people excuse to get out of gold, said Edward Moya, senior market analyst at OANDA. "But we are still going to see gold prices continue to rise and $1,950 level seems like a very short-term goal," Moya added. Benchmark U.S. 10-year Treasury yields turned higher, increasing the opportunity cost of holding the non-yielding gold, while the dollar index rebounded from lows, making gold expensive for holders of other currencies. Several Fed officials have reiterated their commitment to a dovish policy stance, while Fed vice chair Richard Clarida on Tuesday said they can curb an outbreak of inflation should it occur without throwing recovery off track. "With investors still sounding the alarm over inflation, institutional interest in the precious metals complex is likely to continue rising following months of outflows, providing an offsetting force against taper fears for the time being," TD Securities said in a note. Gold is often considered a hedge against inflation. Market participants are now looking to U.S. gross domestic product, jobless claims and consumer spending data this week. Elsewhere, palladium fell 0.8% to $2,747.59 per ounce, silver eased 1.1% to $27.68 per ounce and platinum rose 0.4% to $1,187.51 per ounce. (Reporting by Sumita Layek in Bengaluru; Editing by Kirsten Donovan and Will Dunham)