* Wall Street, European shares retreat
* Federal Reserve meeting on Sept 16-17
* Speculators lower bullish bets in COMEX gold
(New throughout, updates prices and market activity; adds
second byline, dateline, previously LONDON)
By Marcy Nicholson and Clara Denina
NEW YORK/LONDON, Sept 14 (Reuters) - Gold turned slightly
higher on Monday, clawing above the prior session's one-month
low on uncertainty ahead of a Federal Reserve policy meeting
that will be scrutinized for clarity on when the U.S. central
bank will raise interest rates.
Spot gold XAU= was up 0.1 percent at $1,109 an ounce by
3:15 p.m. EDT (1915 GMT). It had fallen to $1,098.35 on Friday,
the lowest since Aug. 11.
U.S. gold GCcv1 for December delivery settled up 0.4
percent at $1,107.70, but was also close to its lowest in a
month.
The Fed will kick off a two-day policy meeting on Wednesday.
Though some in the market still reckon a "lift-off" could come
this week, the view is gathering steam that faltering global
growth could push that back even into next year. FRX/
"There has been so much anticipation (about the Fed rate
hike) that we are now anticipated out," Macquarie analyst
Matthew Turner said.
"I don't think that not raising rates in September could
feel like a complete change of policy," Turner said, adding that
one concern for gold could be if the dollar resumes its upward
move against developed market currencies.
The dollar .DXY turned up 0.1 percent after falling to a
near-three-week low against a basket of major currencies. Wall
Street and European shares retreated while oil prices fell as
investors positioned for the Fed meeting. MKTS/GLOB
Gold has benefited in recent years from ultra-low rates,
which cut the opportunity cost of holding non-yielding gold
while weighing on the dollar, in which the metal is priced.
"It's quite resilient coming into the Fed meeting," said
Phillip Streible, senior commodities broker for RJO Futures in
Chicago, adding that the market's change of direction indicates
uncertainty.
A small majority of forecasters are sticking to their guns
and predicting the Fed will pull the trigger this week.
ID:nL1N11H1B3
"A non rate hike in September could give a temporary respite
to gold, but prices are unlikely to breach recent highs around
$1,170," ActivTrades chief analyst Carlo Alberto de Casa said.
Hedge funds and money managers cut their bullish stance in
COMEX gold contracts to a three-week low in the week ended Sept.
8, U.S. government data showed on Friday. ID:nL1N11H1T4
Other precious metals remained under pressure, with silver
XAG= down 1.6 percent at $14.38 an ounce and platinum XPT=
falling 1.1 percent to $954 an ounce.
Palladium XPD= fell 1.3 percent to $584.50.