To update prices and add details and quotes from an analyst

July 20 (Reuters) - Gold prices were steady on Monday as investors assessed the escalation in the Middle East that pushed oil prices higher, while another Federal Reserve official suggested that raising interest rates might be necessary to curb price pressures.

Spot gold was trading at $ 4,018.90 an ounce by 04:55 GMT. U.S. gold futures for August delivery rose 0.1 percent to $ 4,023.10 .

Oil prices jumped more than 3 percent after U.S. forces launched attacks on Iran for the ninth consecutive day on Monday, with the confirmed death toll of U.S. military personnel in the renewed fighting rising to three, and concerns growing about shipping through the Strait of Hormuz.

Brian Lan, director at GoldSilver Central, said, "The war is still ongoing, with the focus on rising oil prices which could lead to higher inflation, keeping gold under pressure."

He went on to say that despite this, "$4,000 represents an important level, and there is support for the metal when it falls below this level."

Rising oil prices are fueling inflation fears and expectations of longer-term interest rate hikes. Gold is typically seen as a hedge against inflation, but higher interest rates increase the opportunity cost of holding this non-yielding asset.

Beth Hammack, president of the Federal Reserve Bank of Cleveland, joined a growing number of policymakers who believe interest rates may need to be raised to combat persistent inflation, setting the stage for a charged debate at the Fed's next meeting on July 29.

According to the CME Group's FedWatch tool, traders now expect an 82 percent probability of an interest rate hike in December, compared to 73 percent last week.

As for other precious metals, silver rose 1.7 percent to $ 56.87 an ounce in spot trading, platinum was steady at $1,592.34 , and palladium climbed 0.1 percent to $ 1,249.25 .