PRECIOUS-Gold pares gains as focus back on U.S. rate hike expectation

* Gold rebounds from six-year low, pares some gains
* U.S. dollar rises as fears fade after Paris attacks
* Platinum turns up after tapping 7-year low

(Recasts, updates trading, adds comment, byline, NEW YORK
dateline)
By Marcy Nicholson and Clara Denina
NEW YORK/LONDON, Nov 16 (Reuters) - Gold pared gains on
Monday, after an initial flow of safe-haven buying following the
attacks in Paris slowed down and investors' focus returned to
expectations for the U.S. Federal Reserve to raise interest
rates in December.
Spot gold XAU= rose as much as 1.4 percent to a 10-day
high of $1,097.90 an ounce, and was up just 0.1 percent at
$1,083.76 at 2:01 p.m. EST (1901 GMT), hovering above last
week's six-year low at $1,074.26.
U.S. gold futures for December delivery GCcv1 settled up
0.3 percent at $1,083.60 an ounce.
"The French are making fairly good progress with the
arrests, with the raids. I think the market is turning its
attention to the fundamentals of the market," said Rob Haworth,
senior investment strategist for U.S. Bank Wealth management in
Seattle.
"We're seeing increased risk but the fundamentals that are
driving the Fed really are bigger factors and don't seem
dissuaded." urn:newsml:reuters.com:*:nL8N13A0D1
In the first 10 minutes of trading Monday, nearly 3,000 lots
changed hands, almost 10 times the 300-lot average for the
opening 10 minutes over the past two months, Reuters'
calculations showed.
"Gold opened higher early this morning on the back of what
happened over the weekend on perceived geopolitical risk, but it
seems to be already short-lived because the bigger macroeconomic
issues are the dollar's strength and the (expected) U.S. rate
hike," Citi strategist David Wilson said.
The dollar .DXY rose against major currencies and U.S. and
European equity markets gained modestly, as markets grew more
convinced the Fed will raise interest rates next month and
investor worries faded over Friday night's attacks in Paris.
USD/ MKTS/GLOB
Before Monday's gains, gold had fallen for 12 sessions out
of 13 on increasing bets that the Fed would raise U.S. interest
rates next month, which would increase the opportunity cost of
holding the non-yielding asset.
Gold is typically seen as a safe investment during times of
uncertainty. However, there has not been an increase in demand
from retail investors since the Paris attacks, German coin
dealer Degussa said in an emailed statement.
"(Buying was) already relatively high throughout last week,
but the reason for that was clearly the most recent price drop,"
the statement said.
Tracking gold, the platinum group metals gained. Platinum
XPT= was up 1.1 percent at $883.75, after falling to $851, the
lowest since December 2008. Palladium XPD= climbed 1.7 percent
to $545, rising for the first time in six sessions.
Silver XAG= was flat at $14.24 an ounce.