(Adds comment and updates prices) * Gold could test support at $1,776/oz - technicals * Higher inflation data tests Fed’s transitory inflation view * Dollar steadies close to more than 2-week high hit on Friday Nov 1 (Reuters) - Gold prices edged lower on Monday as a robust dollar cooled bullion’s appeal after U.S. data showed another uptick in inflation fuelled bets over the Federal Reserve tightening monetary policy sooner than expected. Spot gold fell 0.1% to $1,781.99 per ounce by 0819 GMT. The metal slipped to a more one-week trough on Friday. U.S. gold futures was steady at $1,784.10. Michael Langford, director at corporate advisory AirGuide expects gold to “tread water” going into Tuesday’s Fed policy meeting and said the metal could trade between $1,750 and $1,800 if the central bank sticks to the current expected tapering plan. Data released on Friday showed the jury was still out on the Fed’s view that inflation is transitory and should moderate with time, with the personal consumption expenditures price index advancing last month. Following the data, futures on the Ged funds rate:, which track short-term rate expectations, priced in a 90% chance of a quarter-point tightening by June 2022, factoring in another rate increase by December. Jeffrey Halley, senior market analyst, Asia Pacific, OANDA said the Fed was unlikely to be more hawkish than previously signalled. “Though the Fed might raise the amount of monthly taper targets, they will likely quite strongly say that no interest rate hikes are imminent. But none of this will be good news for gold as this should still drive the dollar and yields higher.” Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of holding non-interest bearing gold. Reuters technical analyst Wang Tao expects spot gold to retest a support at $1,776 per ounce. The dollar steadied close to a more than two-week high hit on Friday, making gold less appealing to buyers holding other currencies. Spot silver fell 0.4% to $23.76 per ounce. Platinum gained 1% to $1,027.68, while palladium eased 0.6% to $1,990.84. Reporting by Nakul Iyer in Bengaluru; Editing by Rashmi Aich, Subhranshu Sahu and Emelia Sithole-Matarise