Gold hits lowest in more than 3 weeks on stronger dollar, Fed worries
* U.S. 10-year bond yields hit one-month high
* Dollar scales more than 1-month peak
* Specs cut net long positions in gold- CFTC
By Brijesh Patel
Aug 22 (Reuters) - Gold prices hit their lowest in more than three weeks on Monday, weighed down by a stronger dollar and expectations of more rate hikes from the U.S. Federal Reserve to tame surging inflation.
Spot gold XAU= was flat at $1,747.55 per ounce, as of 0318 GMT, after hitting its lowest since July 28 at $1,743.83 in early Asian trading. U.S. gold futures GCv1 eased 0.1% to $1,761 per ounce.
"The upward resumption in the U.S. dollar will of course be weighing on the gold market, but it seems to be more aligned with the simultaneous sell-off seen across bonds, stocks and currencies," said Clifford Bennett, chief economist at ACY Securities.
"Wherever there had been a period of false hopes such as the Federal Reserve slowing, those expectations appear to be immediately evaporating."
The dollar USD= rose to a more one-month high against its rivals, making gold more expensive for buyers holding other currencies.
Benchmark 10-year Treasury yields US10YT=RR rose to their highest in a month, increasing the opportunity cost of holding non-yielding gold.
The Fed will raise rates by 50 basis points in September amid expectations inflation has peaked and growing recession worries, according to economists in a Reuters poll.
Traders are now pricing in around a 46.5% chance of a 75-basis-point rate hike in September and a 53.5% chance of a 50-bp increase after recent hawkish remarks from Fed officials. FEDWATCH
Focus this week will be on comments by Fed Chair Jerome Powell when he addresses the annual global central banking conference in Jackson Hole, Wyoming, on Friday.
Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion.
Speculators cut their net long COMEX gold position in the week to Aug. 16, data showed on Friday.
Elsewhere, spot silver XAG= gained 0.5% to $19.12 per ounce, platinum XPT= edged 0.1% higher to $896.74, and palladium XPD= rose 1% to $2,145.90.
Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu