Gold slips from one-month peak as dollar firms

* Investment demand for gold quite flat -analyst

* Palladium hit over one-month peak

Dec 28 (Reuters) - Gold prices retreated from a more than one-month peak on Tuesday as the dollar strengthened, although concerns over rising inflation kept bullion above the key $1,800 per ounce pivot.

Spot gold was down 0.2% at $1,806.97 per ounce by 1427 EDT (1927 GMT) after hitting its highest since Nov. 22 at $1,820 earlier in the session.

U.S. gold futures settled up 0.1% at $1,810.90.

Making gold less appealing for other currency holders, the dollar index rose 0.1% against its rivals on expectations the U.S. Federal Reserve could raise interest rates as early as March to counter rising inflation.

The lack of a rise in bond yields and building inflationary pressures are supportive factors limiting losses for the gold market, said David Meger, director of metals trading at High Ridge Futures.

"The ongoing trend (for gold) remains sideways to higher in the near term, and we believe that this trend is coming from the continuation of the inflationary pressures that we see building in the market."

Some investors view gold as a hedge against higher inflation, but bullion is highly sensitive to rising U.S. interest rates, as these increase the cost of holding it.

While gold prices are expected to stay around the current levels early next year, rising U.S. interest rates and falling inflation could hit prices, said UBS analyst Giovanni Staunovo, forecasting the metal to end 2022 around $1,650 per ounce.

Meanwhile, the rally in equity markets lost steam as investors eyed Omicron-driven travel disruptions and store closures.

"While there are concerns over the Omicron variant, the investment demand (for gold) is quite flat," said Jigar Trivedi, a commodities analyst at Mumbai-based broker Anand Rathi Shares.

Elsewhere, silver fell 0.1% to $23.01 per ounce, while platinum climbed 0.6% to $976.50.

Palladium rose 1% to $1,991.18 per ounce, having touched a more than one-month peak of $2,019 earlier in the session. (Reporting by Kavya Guduru and Seher Dareen in Bengaluru; Additional reporting by Brijesh Patel; Editing by Aditya Soni, Uttaresh.V and Maju Samuel)