* Investors await Powell’s testimony in Congress this week * JP Morgan: Gold to average $1,686 per troy ounce in 2021 (Updates prices, adds comment) July 12 (Reuters) - Gold fell on Monday in step with a stronger dollar as investors cautiously looked forward to U.S. inflation data that could influence the Federal Reserve’s timeline for easing its bond purchases. Spot gold was down 0.2% to $1,804.80 per ounce by 1:50 p.m. EDT. U.S. gold futures settled 0.3% lower at $1,805.90. The closely watched U.S. consumer price index (CPI) report is due to be released on Tuesday. Fed Chair Jerome Powell is scheduled to testify before Congress on Wednesday and Thursday.