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Israel-Iran battle escalates

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US Fed policy decision due on Wednesday

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Palladium up more than 1%

(Adds comments, updates for Asia morning session)

By Brijesh Patel

June 16 (Reuters) - Gold rose for a fourth straight

session to a near two-month high on Monday, as intensified

clashes between Israel and Iran over the weekend stoked fears of

a broader regional conflict, pushing investors towards

safe-haven assets.

Spot gold gained 0.3% to $3,442.09 an ounce, as of

0246 GMT, after hitting its highest level since April 22 earlier

in the session.

U.S. gold futures advanced 0.3% to $3,461.90.

"It's the joint political risk premium that's rising due to

the Iran-Israel conflict at this point that is boosted

safe-haven demand for gold," said Kelvin Wong, a senior market

analyst, Asia Pacific at OANDA.

"We have a clear break above $3,400 right now and the short

term uptrend is intact. We are seeing resistance level at $3,500

and with the possibility of breaking new high above the $3,500

level."

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 he hopes Israel and Iran

can broker a deal but said sometimes countries have to fight it

out first.

Gold often considered a safe-haven asset during times of

geopolitical and economic uncertainty.

Investors this week will look forward to host of central

bank monetary policy decisions, with the spotlight on the U.S.

Federal Reserve on Wednesday.

The U.S. central bank is widely anticipated to keep interest

rates steady, with markets awaiting for signals on potential

rate cuts in the months ahead.

Futures markets suggest expectations for two rate cuts by

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

inflation data last week.

Elsewhere, spot silver steady at $36.29 per ounce,

platinum rose 0.4% to $1,233.87, while palladium

gained 1.3% to $1,040.96.