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July 15 (Reuters) - Gold prices reversed earlier losses and rose slightly on Wednesday after U.S. producer prices unexpectedly fell in June, but rising tensions in the Middle East limited gains as they kept on mind concerns about inflation and interest rates.

Spot gold rose 0.3 percent to $ 4,067.60 an ounce by 12:58 GMT. U.S. gold futures for August delivery gained 0.2 percent to $ 4,075.80 .

“Gold pared its earlier losses after the producer price index came in lower than expected, easing some concerns about the Federal Reserve raising interest rates several times this year,” said Philip Strable, senior market analyst at Blue Line Futures.

The U.S. Labor Department's Bureau of Labor Statistics reported that the Producer Price Index for final demand fell 0.3 percent last month after a downwardly revised increase of 0.6 percent in May. Economists polled by Reuters had forecast the index would be unchanged after a previously reported rise of 1.1 percent in May.

The CME FedWatch tool showed traders seeing a probability of about 9.1 percent for an interest rate hike at the Federal Reserve's (the US central bank) meeting in July, compared with 16.6 percent before the data was released.

Data released on Tuesday also showed that U.S. consumer price inflation slowed more than expected in June.

Meanwhile, the United States said it had launched a new wave of strikes against Iran after reimposing a naval blockade on Iranian ports, while Iran threatened to block further regional energy exports. Oil prices continued their gains on Wednesday.

Higher fuel costs could lead to continued inflationary pressures, prompting central banks to keep interest rates high for longer, and putting pressure on the appeal of gold as a non-yielding asset.

As for other precious metals, silver fell 0.1 percent to $ 58.58 an ounce in spot trading. Platinum rose 0.4 percent to $ 1,638.24 , while palladium slipped 0.1 percent to $ 1,303.50 .