(Recasts, adds comment and updates prices) * Benchmark 10-year Treasury yields hit 5-month peak * Fed likely to wait until 2023 to hike rates- Reuters poll Oct 20 (Reuters) - Gold prices rose on Wednesday, buoyed by a slightly weaker dollar which offset surging U.S. bond yields and lingering fears over sooner-than-expected interest rates hikes. Spot gold rose 0.3% to $1,773.65 per ounce by 0341 GMT. The metal rose as much as 1.2% on Tuesday before giving up most of those gains as Treasury yields rallied. U.S. gold futures gained 0.2% to $1,773.70. U.S. benchmark 10-year Treasury yields surged to their highest since May 20 on Wednesday, raising the opportunity cost of holding non-yielding bullion. But offseting higher yields was a softer dollar index which made bullion cheaper for buyers holding other currencies. “Gold continues to hang in there, but I think the writing is on the wall and as soon as the Fed makes a more hawkish pivot, gold could ignore higher inflation and trend lower,” said Stephen Innes, managing partner at SPI Asset Management. If inflation keeps rising at its current pace in the next few months rather than subsiding as expected, Fed policymakers may need to adopt “a more aggressive policy response” next year, Fed Governor Christopher Waller said. Though persistent inflation would likely be the greater risk for the U.S. economy over the coming year, a majority of economists in a Reuters poll expect the Federal Reserve to wait until 2023 before raising interest rates. Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up. Innes also said higher yields and an uptick in equity markets suggests markets are still optimistic about the health of the economy, posing another challenge for the safe-haven precious metal. Spot silver rose 0.4% to $23.74 an ounce, while platinum fell 0.4% to $1,035.85 and palladium eased 0.4% to $2,089.68. (Reporting by Nakul Iyer in Bengaluru; Editing by Subhranshu Sahu and Krishna Chandra Eluri)