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July 6 (Reuters) - Gold prices fell on Monday after hitting a two-week high, as the dollar rose slightly from recent lows, but receding expectations of a Federal Reserve interest rate hike limited the yellow metal's losses.

Gold fell 0.4 percent to $4,160.33 an ounce by 04:51 GMT in spot trading, after hitting its highest level since June 22 earlier in the day . U.S. gold futures for August delivery rose 1.1 percent to $4,172 an ounce.

Tim Waterr, chief market analyst at KCM Trade, said, "Gold continues to face an unfavorable situation due to the strength of the dollar."

He added, "The minutes of this week's Federal Open Market Committee meeting will be closely watched for clearer signals regarding the direction of the Federal Reserve's monetary policy. Investors will be looking for evidence of whether the other committee members share (Council Chairman) Kevin Warsh's tightening expectations or whether there is more inclination toward easing within the group."

The dollar rose 0.1 percent, which led to a rise in gold, which is priced in the US currency, for holders of other currencies.

Gold rose more than 2 percent last week, ending a four-week losing streak, after weaker-than-expected U.S. jobs data eased concerns about persistent inflation and rising interest rates.

Data released on Thursday showed a sharp slowdown in U.S. job growth during June, and job gains figures for the previous two months were revised downward, indicating a slowing labor market and prompting markets to lower their expectations for a near-term interest rate hike.

According to the CME FedWatch tool, traders now see a probability of an interest rate hike in September at around 55 percent, down from over 60 percent before the data was released.

Gold, which does not generate income, usually thrives when interest rates are low.

JPMorgan said that demand for gold from key sectors would not be as strong as expected, and set a ceiling for the precious metal's prices this year at $4,300 in the third quarter and $4,500 in the fourth quarter.

As for other precious metals, silver fell 1 percent in spot trading to $ 61.77 an ounce, after earlier hitting its highest level since June 23.

Platinum fell 0.3 percent to $ 1,632.80 an ounce, and palladium dropped 0.5 percent to $ 1,267.65 an ounce.