May 18 (Reuters) - Gold prices fell on Monday to their

lowest point in more than a month, as Middle East tensions

pushed oil prices higher, fuelling inflation fears and

reinforcing expectations of higher-for-longer interest rates.

FUNDAMENTALS

* Spot gold was down 1.1% at $4,488.99 per ounce, as

of 0052 GMT, hitting its lowest level since March 30.

* U.S. gold futures for June delivery lost 1.5% to

$4,493.30.

** Gold was pressured by rising geopolitical tensions after

a drone strike caused a fire at a nuclear power plant in the

United Arab Emirates, lifting crude prices and bets of interest

rates.

** Saudi Arabia, meanwhile, reported intercepting three

drones, as U.S. President Donald Trump warned that Iran must act

"fast" after efforts to end the U.S.-Israeli war appeared to

have stalled.

** Central banks tend to hike interest rates during times of

inflation, which in turn tends to dim non-yielding bullion's

appeal.

* Oil prices extended gains on Monday to hit a two-week

high.

* Markets are increasingly pricing in a U.S. Federal Reserve

rate hike before year-end, with a 50% chance of a move by

December, according to CME Group's FedWatch tool.

* Investors await minutes of the Fed's April meeting, due to

be released this week, for clues on the central bank's monetary

policy direction.

* India has curbed imports of silver in nearly all forms

with immediate effect, according to a government order issued on

Saturday, as the world's biggest consumer of the metal seeks to

rein in shipments and ease pressure on the rupee.

* Gold discounts in India jumped to a record last week,

while investment demand kept Chinese premiums firm.

* Gold speculators raised net long positions by 4,963

contracts to 100,627 in the week ended May 12.

* Spot silver fell 2.2% to $74.30 per ounce, platinum

lost 0.6% to $1,961.30, and palladium dropped 1.2%

at $1,396.25.

DATA/EVENTS (GMT)

0200 China Urban Investment (YTD) YY April

0200 China Retail Sales YY April

0200 China Unemp Rate Urban Area April

0500 Japan Chain Store Sales YY April