Jan 31 (Reuters) - Gold prices fell for a fourth consecutive session on Monday and were set for their biggest monthly drop since last September, as the U.S. dollar strengthened ahead of key central bank meetings, making bullion more expensive for holders of other currencies.
FUNDAMENTALS
* Spot gold was down 0.2% at $1,788.41 per ounce, as of 0140 GMT, hovering near the previous session's $1,779.20 - its lowest since Dec. 16. U.S. gold futures were up 0.1% at $1,788.20.
* The metal has declined more than 2% so far this month.
* The dollar index hovered close to an 18-month peak scaled last Friday.
* The U.S. Federal Reserve plans to raise interest rates in March on the assumption that the economy will largely steer clear of a fallout from the Omicron coronavirus variant and keep growing at a healthy clip. read more
* Although gold is considered a hedge against inflation, interest rate hikes would raise the opportunity cost of holding non-yielding bullion.
* Japan's factory output shrank for the first time in three months in December as a decline in machinery outweighed a small rise in car production, casting a cloud over the strength of the economic recovery. read more
* Traders are on the lookout for policy decisions from Australian, UK and European central bank meetings expected this week.
* Top Asian hubs saw firm demand for physical gold last week in the run-up to the Lunar New Year holiday, while buyers in India held off making purchases before the government announces its annual budget.
* Spot silver shed 0.3% to $22.36 an ounce, while platinum was up 0.1% at $1,008.27.
* Palladium fell 0.5% to $2,364.49, but the auto-catalyst metal was set for its best monthly gain since February 2008, up about 25%.
DATA/EVENTS (GMT)
1000 EU GDP Flash Prelim Q4
1300 Germany CPI Prelim Jan
1300 Germany HICP Prelim Jan
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