(Recasts, updates prices) * UBS sees weaker silver price with Fed’s policy normalisation * Trend in gold still firmly upwards - analyst * U.S. 10-year Treasury yields near 3-week high Nov 15 (Reuters) - Gold prices hit a five-month high on Monday as inflation worries burnished the safe-haven metal’s appeal even as the dollar and U.S. bond yields strengthened. Spot gold was up 0.1% at $1,866.03 per ounce by 02:03 p.m. ET (1902 GMT), following a slight pullback earlier in the day due to profit-taking. U.S. gold futures settled down 0.1% at $1,866.60 per ounce. There has been some routine profit-taking by shorter-term futures traders but gold’s upward trend is still firmly in place, said Jim Wyckoff, senior analyst at Kitco Metals. Bullion has gained about $100 over the past eight sessions, its longest winning streak since May, as its appeal as an inflation hedge has been boosted by a surge in U.S. consumer prices and as major central banks have maintained a dovish stance on interest rates. Interest rate hikes tend to reduce non-interest bearing gold’s appeal as it raises the metal’s opportunity cost. However, U.S. benchmark 10-year Treasury yields rose to near three-week high, increasing the opportunity cost of holding the bullion. The dollar index gained 0.3% to a 16-month high against its rivals. Saxo Bank analyst Ole Hansen warned, “If gold fails to break above $1,870 today, then there is a risk that could push it back down to $1,830-$1,835 area, as that could disappoint some investors.” The Minneapolis Federal Reserve Bank’s president said on Sunday he expected higher inflation in the next few months but said the U.S. central bank should not over react to elevated inflation as it was likely to be temporary. “The Federal Reserve’s policy normalization, higher interest rates, the USD’s strengthening, and inflation pressure likely fading in 2022 call for a weaker silver price,” UBS analysts said in a note. Silver fell 0.8% to $25.09 per ounce. Platinum rose 0.6% to $1,088.51 and palladium gained 2.5% to $2,161.07. (Reporting by Bharat Govind Gautam, Brijesh Patel and Arundhati Sarkar in Bengaluru; Editing by Amy Caren Daniel and Vinay Dwivedi)