PRECIOUS-Gold gains on dollar retreat; Fed rate hike in focus

New York (July 18) - Gold prices edged higher on Monday as the U.S. dollar pulled back slightly, although the gains were capped by expectations of aggressive rate hikes by the Federal Reserve.

FUNDAMENTALS

* Spot gold rose 0.3% to $1,711.67 per ounce by 0111 GMT, after falling to a near one-year low last week. U.S. gold futures gained 0.2% to $1,708.00.

* The dollar retreated after hitting a near 20-year high last week against its rivals, making greenback-priced bullion more expensive among buyers holding other currencies. [USD/]

* Fed officials signalled Friday they will likely stick with a 75-basis-point interest rate increase at their July 26-27 meeting, though a recent high inflation reading could still warrant larger increases than anticipated later in the year.

Reuters