(Updates prices)
    * Putin calls peace talks a "dead end"
    * Dollar highest since May 2020
    * Spot gold faces strong resistance at $1,975/oz -
Technicals

    By Asha Sistla
    April 13 (Reuters) - Gold prices edged higher on Wednesday
as concerns of an escalation in the Russia-Ukraine conflict
increased safe-haven bids for the precious metal, although a
firmer U.S. dollar capped bullion's gains. 
    Spot gold        was up 0.2% at $1,970.21 per ounce, as of
0748 GMT, after hitting a near one-month peak of $1,978.21 on
Tuesday. U.S. gold futures        were down 0.3% at $1,970.80.
    "Gold is benefiting from some safe-haven demand this week as
inflation fears grow, China growth stumbles and the war in the
Ukraine gets set for round two," said OANDA senior analyst
Jeffrey Halley.
    Russian President Vladimir Putin described the on-and-off
peace negotiations as "a dead-end situation" on Tuesday, while
U.S. President Joe Biden said for the first time that Moscow's
invasion of Ukraine amounts to genocide.             
    The dollar index        firmed near May 2020 highs, making
gold less attractive for overseas buyers, after reassurance from
U.S. Federal Reserve Governor Lael Brainard that the central
bank will stay the course on hiking interest rates.       
             
    Although gold is considered a hedge against inflation and
geopolitical risks, interest rate hikes would raise the
opportunity cost of holding non-yielding bullion.
    "March inflation came in at up 8.5%, year-on-year, which is
a 40-year high, inflation historically bullish for hard
commodities," said Michael Langford, director at corporate
advisory AirGuide.             
    "That being said gold has no attributable yield and in a
high interest rate environment, will be less desirable relative
to other asset classes. I see gold having some minimal upside
but medium to longer-term more likely to fall in price."   
    Spot gold faces a strong resistance at $1,975 per ounce,
according to Reuters technical analyst Wang Tao.          
    Spot silver        was up 0.7% at $25.51 per ounce, platinum
       rose 1.1% to $976.31 and palladium        gained 2.6% to
$2,386.29.

 (Reporting by Asha Sistla in Bengaluru; Editing by Sherry
Jacob-Phillips)