To The Moon

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 XAU= 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 GCcv1 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. FEDWATCH

* 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 XAG= was down 0.2% at $36.23 per ounce, platinum XPT= rose 0.6% to $1,234.47, while palladium XPD= gained 0.9% to $1,036.58.

(Reporting by Anmol Choubey in Bengaluru; Editing by Rashmi Aich)

((anmol.choubey@thomsonreuters.com;))