By Sethuraman N R
(Reuters) - Gold prices inched down on Tuesday amid expectations for more U.S. interest rate hikes this year.
Spot gold was down 0.2 percent at $1,317.86 an ounce by 0655 GMT. Last week, prices touched their strongest since Sept. 15 at $1,325.86.
U.S. gold futures were down 0.1 percent at $1,318.80 an ounce.
The dollar hit a more than one-week high against a basket of other major currencies on Monday. It was steady at $92.342 on Tuesday
"However, the market will get used to the rate hike expectations soon and the dollar will lose its strength, pushing gold higher," Ming added.
"We can expect prices to go past 2017 highs in the second half of 2018."
Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
"On the upside, a break above last week's high of $1,324 could see the yellow metal make a move on the September top of $1,355."
Among other precious metals, spot silver fell 0.3 percent to $17.08 an ounce.
Platinum dropped 0.8 percent to $964.35, after hitting a 3-1/2 month peak on Monday at $973.60.
Palladium was up 0.7 percent at $1,108.22, after marking a record high at $1,111.40 an ounce.
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