June 22 (Reuters) - Gold prices rose on Monday from their lowest level in more than a week hit in the previous session, as oil prices fell after Iran indicated progress in peace talks with the United States, although expectations of an interest rate hike following hawkish signals from the U.S. Federal Reserve weighed on the precious metal's outlook.

Gold rose 0.9 percent to $4,197.41 an ounce by 02:38 GMT in spot trading, after falling on Friday to its lowest level since June 11. U.S. gold futures for August delivery fell 0.7 percent to $4,215.90.

The first round of talks between senior US and Iranian officials in Switzerland ended on Monday, and Iran's Press TV quoted an Iranian Foreign Ministry spokesman as saying that good progress had been made.

A joint statement issued by the two mediating countries, Qatar and Pakistan, said that the United States and Iran had agreed on a roadmap to reach a final agreement within 60 days.

Edward Meir, an analyst at Marex, said, "The current situation in Switzerland is very different from what it was a few hours ago when the two sides were arguing, but now it seems that they are making some progress."

He added, "We will continue to trade in line with geopolitical trends for a little longer, but the situation is fluid, so it is probably best to observe developments from the sidelines for the time being."

Meanwhile, Federal Reserve Chairman Kevin Warsh's focus on inflation at last week's press conference, without any more nuanced comments about what might open the door to an interest rate hike, led investors to conclude that a rate increase was imminent.

According to CME Group's Fidwatch tool, traders see an 89 percent chance of an interest rate hike in December, compared with a 61 percent chance before the Fed meeting.

As for other precious metals, silver rose 1.8 percent to $66.10 an ounce in spot trading, platinum gained 0.2 percent to $1,667.97 and palladium climbed 1 percent to $1,270.41.