* Gold adds to 1.6 pct gain from previous session
* Dollar near 3-week low after Fed minutes (Updates prices)
By A. Ananthalakshmi
SINGAPORE, Oct 12 (Reuters) - Gold jumped to a seven-week high on Monday bolstered by a weaker dollar and expectations the Federal Reserve will not hike U.S. interest rates this year.
Spot gold XAU= rose 0.8 percent to $1,166.26 an ounce by 0651 GMT, after climbing to $1,166.60 earlier in the session, its highest since Aug. 24. The dollar was close to a three-week low. USD/
The metal gained 1.6 percent in the previous session after minutes from the Fed's September policy meeting showed that the U.S. central bank was deeply cautious about tightening monetary policy.
Trading activity during Asian hours was thinner than usual with Japanese markets closed for a public holiday. U.S. markets will also be shut on Monday for a holiday.
But investors will be keen on U.S. data on inflation, retail sales and industrial production due later in the week.
"We don't expect the U.S. economic data to be very optimistic," said Howie Lee, an analyst at Phillip Futures.
"So the dollar could be in for more pain this week. That could push gold higher, even up to $1,180," he said.
Soft economic data could add to pressure on the Fed to delay the first U.S. rate hike in nearly a decade, following a weaker-than-expected nonfarm payrolls report earlier this month and caution over the global economy.
Markets now expect the first U.S. rate hike in nearly a decade in early 2016.
A delayed rate rise could support non-interest-paying gold, although uncertainty over the timing could weigh on prices in the near-term.
Fed policymakers are still likely to raise rates this year but that is "an expectation, not a commitment", and could change if the global economy pushes the U.S. economy further off course, Fed Vice Chairman Stanley Fischer said over the weekend. urn:newsml:reuters.com:*:nL1N12B087
Hedge funds and money managers raised their bullish bets in COMEX gold and silver to four-month highs in the week ended Oct. 6, data on Friday showed, amid expectations the Fed will delay a much-anticipated rate hike. urn:newsml:reuters.com:*:nL1N1291V1
Also supporting prices was news from South Africa that the Association of Mineworkers and Construction Union voted on Sunday to strike at the operations of AngloGold Ashanti ANGJ.J , Harmony Gold HARJ.J and Sibanye Gold SGLJ.J . urn:newsml:reuters.com:*:nL8N12B0MU
Among other precious metals, silver XAG= gained nearly 1 percent, while platinum XPT= jumped to a one-month high of $988.30 an ounce.
Palladium XPD= was trading close to a near-four-month high of $722 reached on Friday.
PRICES AT 0651 GMT Metal
Last
Change Pct chg
Spot gold
1166.26
9.13
0.79 Spot silver
15.94
0.12
0.76 Spot platinum
983.99
5.49
0.56 Spot palladium
710.5
3
0.42 Comex gold
1166
10.1
0.87 Comex silver
15.955
0.137
0.87
COMEX gold and silver contracts show the most active months