* Silver touches seven-week high
* Platinum hits one-week high
By Renita D. Young and Eric Onstad
NEW YORK/LONDON, June 11 (Reuters) - Gold inched higher on Monday, as investors anticipated the U.S. central bank monetary policy meeting this week that is expected to boost interest rates, and ahead of a U.S.-North Korea summit.
Spot gold XAU= gained 0.1 percent to $1,299.83 ounce by 1:46 p.m. EDT (1746 GMT).
U.S. gold futures GCcv1 for August delivery settled up 50 cents, or 0.04 percent, at $1,303.20 per ounce.
The U.S. Federal Reserve will likely raise its target interest rate to above the rate of inflation for the first time in a decade, seeking to sustain the second-longest U.S. expansion on record while continuing to edge rates higher. interest rates dent the appeal of non-interest bearing assets like gold. Yet gold climbed higher.
"With the geopolitical risk with North Korea and the Fed rate hike being baked into the market, there's really no downside potential for gold. Only upside potential if something doesn't dust the market," said Walter Pehowich, executive vice president of investment services at Dillon Gage Metals.
The dollar index .DXY was steady against a basket of major currencies. USD/
Weighing on gold were encouraging signs from U.S. President Donald Trump about a summit with North Korean leader Kim Jong Un in Singapore on denuclearization efforts, dimming gold's safe haven attraction. market opened predictably quiet ahead of the abundance of risk events this week and wholly ignored President Trump going rogue at the G7," said Stephen Innes, APAC trading head at OANDA, adding that with geopolitical risk moderating, the Fed and the European Central Bank (ECB) would guide gold's near-term fate. ECB and Bank of Japan also have policy meetings this week.
Meanwhile, silver XAG= gained 0.8 percent to $16.87 an ounce, after hitting a seven-week high of $16.95 earlier in the session.
Palladium XPD= climbed 0.7 percent to $1,021.47 an ounce, while platinum XPT= rose 0.3 percent to $904.10. Platinum touched a one-week high of $910.50 earlier in the session.
Platinum group metals, used for catalytic converters in vehicles, were supported by data showing Chinese automobile sales in May were up 9.6 percent from a year earlier. good figures helped ensure that palladium remains firmly above the $1,000 per troy ounce mark," Commerzbank (DE:CBKG) said in a note.