* Spot gold still targets $1,789/oz - technicals * U.S. CPI data, Powell’s testimony in focus this week (Recasts, adds comment, updates prices) July 12 (Reuters) - Gold prices fell on Monday, set for its biggest drop in nearly two weeks, as a bounce in dollar and buoyant equities dimmed the safe-haven metal’s appeal. Spot gold fell 0.4% to $1,800.96 per ounce by 0659 GMT. U.S. gold futures dropped 0.6% to $1,799.30 per ounce. While there has been some concerns over the highly contagious the Delta variant of the coronavirus, the more optimistic side of the market sees this as temporary and think economic growth and inflationary pressures might return sooner, preventing any sort of convincing recovery in gold prices in the near-term, said Harshal Barot, a senior research consultant for South Asia at Metals Focus. Asian shares rallied after Wall Street posted record closing highs on Friday, while the dollar index inched up 0.1% after declining for two sessions. Analysts said the bullion was likely to draw support from lingering Delta variant concerns that could hamper the pace of global economic recovery and persistant loose monetary policies. Market participants now await U.S. data including consumer price index on Tuesday, and Federal Reserve Chair Jerome Powell’s testimony on Wednesday and Thursday for cues on the timeline for policy tightening. A surprise hawkish tilt by the Fed had sent gold in June to its worst month since November 2016. Higher interest rates increase the opportunity cost of holding bullion, which pays no interest. On the technical front, spot gold still targets $1,789 per ounce, as it failed a few times to break a resistance zone of $1,813-$1,818, said Reuters technical analyst Wang Tao. Among other precious metals, silver fell 0.4% to $25.98 per ounce, palladium eased 0.2% to $2,802.68 per ounce and platinum dropped 0.9% to $1,093.58. (Reporting by Eileen Soreng in Bengaluru; editing by Subhranshu Sahu and Rashmi Aich) Our Standards: The Thomson Reuters Trust Principles.