(Adds comment and updates prices) * U.S. retail sales jumped in October * ECB President due to speak later on Wednesday * Gold could retest a support of $1,849/oz- technicals Nov 17 (Reuters) - Gold edged up on Wednesday as lingering fears over inflation supported prices, though a strong U.S. dollar capped gains. ADVERTISEMENT Spot gold rose 0.3% to $1,855.19 per ounce by 0653 GMT. U.S. gold futures gained 0.1% to $1,856.00. “The macro backdrop is still supportive for gold with inflation still elevated, but the continued strength in the dollar is limiting gold’s upside,” said Harshal Barot, a senior research consultant for South Asia at Metals Focus. The dollar was close to a 16-month high, supported by data showing U.S. retail sales jumped last month. A stronger dollar raises gold’s cost to buyers holding other currencies. The report suggested high inflation was not yet dampening spending even as worries over rising costs sent consumer sentiment tumbling to a 10-year low in early November. “The more positive economic data you get, the more bets for faster interest rate hikes are going to increase,” Barot said, adding that the European Central Bank’s dovish stance also supported the dollar, adding to bullion’s headwinds. ECB President Christine Lagarde speaks later on Wednesday, after saying on Monday that tightening monetary policy now to rein in inflation could choke off the euro zone’s recovery. Gold is often viewed as an inflation hedge, but higher interest rates to contain a surge in prices raise the non-interest bearing metal’s opportunity cost. “Gold will likely trade below $1,850 in the near term as Fed stimulus tapering comes to the forefront,” said Michael Langford, a director at corporate advisory AirGuide, adding that the Fed was unlikely to accelerate the pace of tapering. Spot gold may retest a support at $1,849 per ounce and a break below that could cause a fall to $1,831, according to Reuters technical analyst Wang Tao. Spot silver rose 0.6% to $24.94 per ounce. Platinum gained 0.3% to $1,064.30 and palladium was up 0.2%at $2,161.75