(Changes dateline, byline, adds quotes, updates prices)
* Gold fell for 5th straight week, longest run since 2012
* FOMC meets Tues-Wed, seen sending further rate hike
signals
* Bearish momentum seen staying in place, charts pointing
lower
By Veronica Brown and Manolo Serapio Jr
LONDON, July 27 (Reuters) - Gold found respite from recent
hefty losses, trading just under $1,100 an ounce on Monday as
a weaker dollar helped it up from 5-1/2 year lows, but
expectations for a near-term U.S. interest rate hike was seen
keeping momentum firmly with the bears.
The Federal Reserve will hold a two-day meeting this week
where policymakers are likely to send more signals pointing to a
rate rise later in the year as the U.S. economy strengthens.
Spot gold XAU= was marginally higher, up 0.1 percent at
$1,099.55 an ounce by 0955 GMT, after falling for a fifth
straight week last week, the longest run since late 2012.
"The bearish short-term view on gold is that the sequencing
of events should lead to a September Fed rate hike," Macquarie
analyst Matthew Turner said.
The dollar .DXY fell against a basket of currencies after
a drop in U.S. stocks and bond yields, making dollar-denominated
bullion cheaper for holders of other currencies.
Bullion lost more than 3 percent last week after a sudden,
sharp rout across New York and Shanghai markets sparked further
selling, sinking prices to $1,077 on Friday, their lowest since
February 2010.
U.S. gold for August delivery GCcv1 gained 1.2 percent to
$1,099 an ounce.
A steadying from last week's low appears to be mostly due to
short-covering, traders said, given large short positions
amassed.
U.S. speculators turned bearish on Comex gold for the first
time since at least 2006 in the week ended July 21, U.S.
government data showed on Friday. ID:nL1N1041ZT
Holdings of the world's biggest gold-backed exchange-traded
fund, the SPDR Gold Trust GLD , also fell for a seventh day on
Friday to 21.87 million ounces, the lowest since September 2008.
GOL/ETF
The U.S. rate outlook kept a tight grip on sentiment.
Based on forecasts mistakenly released on Friday, staff
economists at the Federal Reserve expect a quarter-point rate
increase this year. The Fed later said it was not the correct
document and gave a new table showing a slightly lower forecast
for gross domestic product and inflation in 2015.
ID:nL1N104197
At this week's meeting, the Fed is unlikely to deviate from
its recent policy statement or Fed Chair Janet Yellen's
congressional testimony this month, Mizuho Bank said.
"The most likely outcome is that Fed rhetoric will emphasise
that the U.S. economy is on track for a rate hike(s) this year,"
the bank said in a note.
In other precious metals, spot palladium XPD= fell 1.6
percent to $612.47 an ounce and platinum XPT= lost 0.6 percent
to $977. Silver XAG= was up a third of a percent at $14.69.
(Editing by Jason Neely)