Gold slips as dollar strengthens at start of busy Fed week

* Dollar ticks up and yields climb

* Markets see 79% chance of Fed rate pause in June

* Platinum hits two-month low, palladium rebounds

June 12 (Reuters) - Gold prices slipped on Monday as the dollar and bond yields firmed, while traders braced for a busy week of key U.S. inflation prints and major central bank policy meetings, with all eyes on the Federal Reserve.

Spot gold fell 0.5% to $1,951.40 per ounce by 10:22 a.m. EDT (1422 GMT). U.S. gold futures eased 0.6% to $1,965.80.

The dollar index drifted 0.1% higher, making gold more expensive for overseas buyers, while an uptick in U.S. Treasury yields made zero-yielding bullion less attractive.

"Going into this week with gold is almost like a coin flip," said Bob Haberkorn, senior market strategist at RJO Futures.

The U.S. consumer price index for May is due at 8:30 a.m. EDT on Tuesday, with the producer price index reading due on Wednesday morning ahead of the Fed's interest rate decision later that day.

"The fact that if we get a halt on rate hikes would push gold up pretty big despite a hawkish (Fed) statement," Haberkorn said.

Markets priced in a 79% chance of the Fed keeping rates unchanged, and a 68% chance of a hike in July, according to CME's Fedwatch tool.

The European Central Bank and the Bank of Japan will deliver their rate decisions on Thursday and Friday, respectively.

"Gold is trading on the assumption that US interest rates will stay where they are with any hike likely to send the precious metal crashing down towards $1,900 an ounce," Kinesis Money analyst Rupert Rowling said in a note.

Silver fell 1.4% to $23.93 per ounce while platinum dipped 1.5% to a two-month low at $993.58.

Palladium, used in emissions-controlling devices in cars, gained 1.6% to $1,345.06 after hitting its lowest since May 2019 on Friday.

"Palladium could head back above $1,500 in the fourth quarter of this year owing to improving automotive production, however this is currently under pressure from destocking by the automakers," said Metals Focus analyst Jacob Smith. (Reporting by Deep Vakil and Seher Dareen in Bengaluru; Editing by Conor Humphries)