* Prospect of U.S. rate hike as soon as April weighs
* Gold fell 3 percent last week, biggest loss since Nov
(Adds comments, byline, NEW YORK dateline, updates prices)
By Devika Krishna Kumar and Clara Denina
NEW YORK/LONDON, March 28 (Reuters) - Gold edged up on
Monday, as the dollar retreated after weaker-than-expected U.S.
data, but stayed close to a one-month low with investors focused
on speeches by Federal Reserve officials that could give more
clues on potential interest rate increases.
The dollar fell from its highest in almost two weeks versus
a basket of currencies .DXY after data showed U.S. consumer
spending rose marginally in February and overall inflation
retreated. The Commerce Department also downwardly revised 0.1
percent gain in January.
Weaker U.S. data supports the view the Fed would raise
interest rates at a gradual pace, weighing on the dollar and in
turn helping gold.
Spot gold XAU= was up 0.3 percent at $1,219.56 an ounce by
2:47 p.m. ET (1847 GMT), after touching a session low of
$1,208.15, its cheapest since Feb. 23. The metal lost 3 percent
last week, its biggest weekly loss since November on speculation
that the next U.S. rate increase could come as soon as next
month.
Liquidity was thin as London and many other gold markets
were closed for the Easter Monday holiday.
All eyes are now on Fed Chair Janet Yellen, who is due to
speak on the U.S. economy and monetary policy on Tuesday, for
any indications on the number and timing of rate hikes this
year.
"If she says something tomorrow that implies they are going
to hike at the next meeting, then you get volatility," said
Michael Matousek, head trader at San Antonio-based U.S. Global
Investors
"But I highly doubt that she'll say something that can spook
markets tomorrow. She understands what can rattle the market, so
she's going to choose her words wisely."
Hawkish comments from several Federal Reserve officials last
week put investors on guard for the possibility of at least two
rates increases this year, triggering a widespread correction
across commodities and bolstering the dollar, the currency in
which commodities are denominated.
The market is also awaiting a speech by New York Fed
President William Dudley on Thursday and U.S. non-farm payrolls
data on Friday. ECONUS
"A non-farm payrolls number above 200,000 could give the
market enough confidence to price in two rate hikes this year,
weighing on gold," said Carlo Alberto de Casa, ActivTrades chief
analyst.
Inflows into gold exchange-traded funds (ETF) continued,
suggesting that some confidence in bullion remained.
Holdings in the SPDR Gold Trust GLD , the world's largest
gold-backed ETF, rose to its highest since December 2013 at
26.48 million ounces on Thursday, the latest available data
shows. HLDSPDRGT=XAU .
Spot silver XAG= gained 0.4 percent to $15.20 an ounce,
palladium XPD= fell 1.4 percent to $565.97 and platinum XPT=
was down marginally at $944.1 an ounce.