* Spot gold rose 2% on Wednesday

* U.S. launches fresh strikes on Iran

* June U.S. PCE data due at 1230 GMT

(Updates prices, adds fresh analyst comment)

By Sukanya Mitra

July 30 (Reuters) - Gold rose on Thursday as a softer U.S.

dollar lent support, while investors weighed the Federal

Reserve's decision to keep interest rates unchanged and

monitored escalating tensions in the Middle East that could

stoke inflationary pressures.

Spot gold rose 0.3% to $4,076.52 per ounce by 1131

GMT. U.S. gold futures for August delivery gained 1% to

$4,074.30.

"The move (for gold) is primarily driven by a weaker U.S.

dollar, with markets modestly adjusting their expectations on

the next Fed moves," UBS analyst Giovanni Staunovo said.

The U.S. dollar index softened 0.2%, making greenback-priced

bullion more affordable for buyers overseas.

The Fed on Wednesday left its benchmark rate in the

3.50%-3.75% range, while U.S. central bank chief Kevin Warsh

pledged an unwavering commitment to bring inflation down. Spot

gold prices rose about 2% after the policy decision.

Meanwhile, the U.S. military said it struck dozens of

Islamic Revolutionary Guard Corps targets in Iran, in

retaliation for Tehran firing ballistic missiles at U.S. troops

in Jordan on Wednesday.

Brent crude prices climbed more than $1 a barrel on

Thursday.

"To see gold rising, we need an improvement in investment

demand and that requires market participants to shift

expectations towards rate cuts," Staunovo said.

Despite being known as an inflation hedge, higher-for-longer

rates tend to diminish bullion's appeal due to its non-yielding

characteristic.

Traders are pricing in about a 63% chance of a rate hike at

the Fed's September meeting, down from about 77% before the Fed

meeting on Wednesday, according to the CME FedWatch Tool.

Investors now await June U.S. Personal Consumption

Expenditures (PCE) data, due at 1230 GMT.

Elsewhere, India has seen a rise in unofficial gold inflows

since the government raised import tariffs on the precious metal

earlier this year, the World Gold Council said.

Among other metals, spot silver rose 0.6% to $58.00

per ounce, platinum gained 0.7% to $1,622.53, and

palladium climbed 3% to $1,283.70.