* Federal Reserve June minutes due at 2 p.m. EDT (1800 GMT)
* Dollar falls to one-week low
By Renita D. Young and Eric Onstad
NEW YORK/LONDON, July 5 (Reuters) - Gold was flat on Thursday, as the U.S. dollar weakened and investors awaited the minutes of the most recent U.S. Federal Reserve policy meeting for clues on the pace of further interest rate hikes this year.
Spot gold XAU= was unchanged at $1,256.15 ounce by 1:36 p.m. EDT (1736 GMT).
U.S. gold futures GCcv1 for August delivery settled up $5.30, or 0.4 percent, at $1,258.80 per ounce.
The dollar index .DXY= fell to its lowest level in more than a week while the euro climbed half a percent to near three-week highs following strong German data. USD/
"The dollar's down, giving some support to precious metals," said Chris Gaffney, president of world markets at TIAA Bank.
"But the Fed minutes are what we're really waiting on to see if members are worried we'll see an overheating...or if they're going to talk about all the trade tensions and the negative impact that may have over some of the numbers."
The minutes of the U.S. central bank's June meeting are scheduled to be published at 2 p.m. EDT (1800 GMT). During the discussion, the Fed had projected two more rate hikes in 2018 for a total of four. FED/DIARY is sensitive to rising interest rates, as higher rates increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which the metal is priced.
The minutes may point to concerns about inflation or that members want monetary policy to keep pace with fairly strong economic growth, traders said.
Investors are also awaiting the release of non-farm payrolls and unemployment data on Friday.
"One would not like to have any bullish bets on gold when the labor market trend is strong," ThinkMarkets chief market analyst Naeem Aslam said.
Physical gold demand has been lackluster in India, the second-biggest gold consumer after China, Commerzbank (DE:CBKG) said, lending no price support.
Meanwhile, silver XAG= was flat at $16.05 an ounce.
Palladium XPD= dropped 0.1 percent to $945.50 an ounce, while platinum XPT= declined 0.5 percent to $836 after touching its lowest since 2008 at $793 on Tuesday.
"It's a speculative-driven selloff in platinum, it's not a fundamental driven selloff," said Jonathan Butler, commodities analyst at Mitsubishi.
"And when we think about the fundamentals, at $800, most South African mines are losing money. So if we maintain these prices sub-$900, there will eventually be a supply-led response."