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PRECIOUS-Gold hovers near 4-week low before key U.S. Fed meeting

       * Dollar steady near 2-decade high
    * Bets jump for a 75-basis-point hike at Fed's June 14-15
    * Asian shares tumble

 (Recasts, adds comments and details, updates prices)
    By Bharat Gautam
    June 14 (Reuters) - Gold prices edged up from a four-week
low on Tuesday, as a pause in the dollar and Treasury yields
rally provided some respite, but gains were limited by growing
bets for aggressive monetary policy tightening from the Federal
    Spot gold        rose 0.3% to $1,824.21 per ounce, as of
0456 GMT, after falling to its lowest since May 19 at $1,810.90
earlier in the session.
    U.S. gold futures        fell 0.2% to $1,827.80.
    Gold is getting some support from hikes being front loaded
with rate cuts sooner along the curve, said Stephen Innes,
managing partner at SPI Asset Management, but added that with no
one wanting to be short on the dollar heading into the Fed meet,
gains would be limited for gold.
    The dollar steadied near a two-decade high scaled on Monday,
which sent greenback-priced bullion nearly 3% lower.
    "Gold has faced selling pressure as investors have decided
to either go to cash, or offload gold to attend margin calls
across other markets," City Index senior market analyst Matt
Simpson said.
    He added that a 75-basis-point hike could see gold come
under further pressure, even if it then regains its status as an
inflationary hedge further out.
    Late on Monday, expectations for a 75-basis-point hike by
the Fed on Wednesday jumped to 96% from 30% earlier in the day,
according to CME's Fedwatch Tool. A 75-bp hike would be the
biggest since 1994.
    Higher short-term U.S. interest rates and bond yields
increase the opportunity cost of holding bullion, which yields
no interest.
    Spot gold may end its bounce around a resistance at $1,832
per ounce and resume its drop towards $1,808 thereafter,
according to Reuters technical analyst Wang Tao.
    Spot silver        gained 0.5% to $21.16 per ounce, platinum
       firmed 0.4% to $936.77, and palladium        rose 0.4% to

 (Reporting by Bharat Govind Gautam in Bengaluru; Editing by
Subhranshu Sahu and Shailesh Kuber)

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