PRECIOUS-Gold extends gains on easing rate-hike fears, markets await Fed minutes

Aug 18 (Reuters) - Gold rose for a third straight session on Tuesday as fears of a U.S. interest rate hike next month eased, with investors awaiting minutes from the Federal Reserve's latest meeting for fresh clues on the monetary policy path.

FUNDAMENTALS

* Spot gold XAU= was up 0.4% at $4,431.09 per ounce, as of 0037 GMT, while U.S. gold futures GCcv1 for December delivery edged 0.3% higher to $4,487.70.

* The U.S. dollar remained subdued, making dollar-priced metals less expensive for holders of other currencies. USD/

* The U.S. central bank will keep its key interest rate unchanged next month and through year-end, according to most economists in a Reuters poll.

* Market pricing for a September quarter-point hike flipped to a near-65% chance of a hold, after unexpected job losses in July, lower-than-expected consumer price inflation, and weaker retail sales. FEDWATCH

* Market focus will be on the minutes of the Fed's most recent policy meeting, due to be released on Wednesday.

* Gold tends to perform well in a low-interest-rate environment as it reduces the opportunity cost of holding non-yielding assets.

* Elsewhere, Iran will shift to a "fully offensive" military posture because efforts to negotiate a permanent end to the war with the U.S. have stalled, a senior Iranian official told Reuters, as Washington ruled out extending a temporary ceasefire agreement.

* Among other metals, spot silver XAG= rose 0.8% to $66.33 per ounce. Platinum XPT= climbed 0.5% to $1,779.50, while palladium XPD= held nearly steady at $1,332.50.

(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu)

((Ashitha.Shivaprasad@thomsonreuters.com;))