To update prices and add details and quotes from analysts

July 7 (Reuters) - Gold prices fell on Tuesday as the dollar and U.S. Treasury yields rose , with investors awaiting the release of the Federal Reserve's June meeting minutes for clues about the direction of monetary policy under new Governor Kevin Warsh.

Spot gold fell 0.9 percent to $ 4,127.59 an ounce by 0639 GMT, while U.S. gold futures for August delivery dropped 0.7 percent to $ 4,139.50 .

"Gold had a good recovery last week, so it's not surprising that it's pulled back a little from some of those gains at the start of this week," said Matt Simpson, senior analyst at StoneX.

The dollar rose, increasing the cost of dollar-denominated gold for holders of other currencies, while benchmark 10-year U.S. Treasury yields climbed to their highest level in two weeks.

“Markets are clearly waiting for some guidance from the Federal Reserve meeting minutes to get a clearer idea of how the central bank is thinking about short-term interest rate policy,” said Nicholas Frappell, a director at ABC Refinery.

The minutes of the Federal Open Market Committee meeting held on June 16 and 17 will be released tomorrow, Wednesday.

Gold prices have fallen by more than 25 percent from their record highs earlier this year, as the US-Israeli war with Iran has raised concerns about inflation, boosted the dollar, and increased expectations of higher interest rates.

But the precious metal hit a two-week high on Monday as a ceasefire agreement between the United States and Iran eased some inflation concerns, and weaker-than-expected U.S. jobs data last week prompted markets to lower their expectations for near-term interest rate hikes.

The CME Group’s FedWatch tool indicates that traders expect a probability of around 56 percent for an interest rate hike in September, down from more than 60 percent before the data was released.

High interest rates make gold, which does not generate returns, less attractive to investors.

As for other precious metals, silver fell 1.6 percent to $ 61.10 an ounce in spot trading, platinum dropped 0.9 percent to $ 1,617.20 , and palladium declined 1.3 percent to $ 1,251.61 .