June 16 (Reuters) - Gold prices rose on Monday, nearing

a two-month high as investors sought refuge in safe-haven assets

after intensified clashes between Israel and Iran stoked fears

of a broader regional conflict.

FUNDAMENTALS

* Spot gold gained 0.4% to $3,447.07 an ounce, as of

0021 GMT, after hitting its highest level since April 22 earlier

in the session.

* U.S. gold futures gained 0.4% to $3,467.20.

* Israel and Iran launched fresh attacks on Sunday, killing

and wounding civilians and raising concerns of a broader

regional conflict, with both militaries urging civilians on the

opposing side to take precautions against further strikes.

* U.S. President Donald Trump said on Sunday that he hopes

Israel and Iran can broker a deal but said sometimes countries

have to fight it out first.

* The U.S. Federal Reserve is scheduled to convene its

policy meeting on June 17-18, with its decision due Wednesday.

* While the central bank is widely anticipated to keep

interest rates steady, markets are keen for signals on potential

rate cuts in the months ahead.

* The Fed has held its benchmark Fed funds rate at

4.25%-4.50% since December, following a quarter-point reduction.

* Futures markets suggest expectations for two rate cuts by

year-end, possibly starting in September, bolstered by tame

inflation data last week.

* Gold, often considered a safe-haven asset during times of

geopolitical and economic uncertainty, tends to thrive well in

low-interest-rate environment.

* Meanwhile, U.S. consumer sentiment improved for the first

time in six months in June as trade tensions between the U.S.

and China eased, but households worried about the economy's

trajectory.

* Elsewhere, spot silver was down 0.2% at $36.23 per

ounce, platinum rose 0.6% to $1,234.47, while palladium

gained 0.9% to $1,036.58.

DATA/EVENTS (GMT)

0200 China Urban Investment (YTD) YY May

0200 China Retail Sales YY May

0200 China CPI MM NSA May

0630 India WPI Inflation YY May

1100 EU Reserve Assets Total May