To update prices and add details

June 29 (Reuters) - Gold prices fell on Monday as oil prices rose amid renewed fighting between the United States and Iran, and the precious metal was also pressured by expectations that the Federal Reserve (the U.S. central bank) will raise interest rates.

Spot gold fell 0.7 percent to $ 4,061.51 an ounce by 0747 GMT. U.S. gold futures for August delivery lost 0.5 percent to $ 4,076.20 .

The precious metal is on track to record a loss for the fourth consecutive month, at 10.5 percent.

Tim Water, senior market analyst at KCM Trade, said, "The renewed skirmishes between the United States and Iran at the start of the week, with reports of new military strikes from both sides, are adding to the uncertainty surrounding the continued decline in oil prices and the outlook for inflation and interest rates."

Oil prices rose after Iran launched missiles and drones at US military sites in Kuwait and Bahrain early Sunday, shortly after US President Donald Trump threatened to eliminate the Iranian leadership if it did not comply with the agreement to end the war.

However, a US official said on Sunday that Tehran and Washington had agreed to end the latest wave of hostilities in the Gulf and resume talks on their dispute over the Strait of Hormuz.

Higher crude oil prices can fuel inflation and increase the likelihood of interest rate hikes. While gold is traditionally seen as a hedge against inflation, it loses its appeal when interest rates rise, given that it does not generate returns.

The CME FedWatch tool indicates that traders expect three interest rate hikes by the Federal Reserve this year, with an almost 80 percent probability of a December increase.

As for other precious metals, silver fell 0.9 percent to $ 58.64 an ounce in spot trading, platinum rose 0.1 percent to $ 1,616.55 , and palladium climbed 1 percent to $ 1,221.29 .