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PRECIOUS-Gold slips from over 2-month high as dollar inches up vs yen

BENGALURU, Aug 14 (Reuters) - Gold on Monday slipped from an over two-month high touched in the previous session, as the dollar edged higher against the yen.

FUNDAMENTALS

* Spot gold was down 0.2 percent at $1,286.10 per ounce at 0102 GMT, after marking its highest since June 7 at $1,291.86 an ounce in the previous session.

* U.S. gold futures for December delivery fell 0.13 percent to $1,292.3 per ounce.

* The dollar edged higher against the yen on Monday, trading above last week's near four-month low, with rising tensions between the United States and North Korea seen as the key to the near-term outlook.

* President Donald Trump issued a new threat to North Korea on Friday, saying the U.S. military was "locked and loaded" as Pyongyang accused him of driving the Korean peninsula to the brink of nuclear war and world powers expressed alarm.

* The Federal Reserve will set a time frame for beginning to shed some of its $4.2-trillion bond portfolio "soon" but, given inflation weakness, it should hold off interest rate hikes for now, Dallas Fed President Rob Kaplan said on Friday.

* The Federal Reserve's key interest rate is getting close to a "neutral" level so the Fed should patiently wait for further evidence that inflation will rise before tightening policy again, Dallas Fed President Rob Kaplan said on Friday.

* U.S. consumer prices rose slightly in July as higher food costs were partly offset by falling prices for a range of other goods, suggesting benign inflation that could persuade a cautious Federal Reserve to delay raising interest rates until December.

* Speculators boosted their net long position in COMEX gold for the fourth straight week to a near two-month high in the week to Aug. 8, U.S. Commodity Futures Trading Commission data showed on Friday.

* India's gold imports are likely to jump by a third in 2017 to 750 tonnes on restocking by jewellers and as good monsoon rainfall is expected to boost demand in rural areas during the upcoming festive season, a leading refiner told Reuters.

* Ghana's gold output is likely to drop sharply in 2017 because of curbs on the small-scale mining that lifted production last year but was causing damage to the environment, a government official said on Saturday.

* India's Multi Commodity Exchange (MCX) will launch the country's first gold options contract in September allowing even smaller players in the bullion industry an instrument to hedge their risk, a senior company official told Reuters.

DATA AHEAD (GMT)

0200 China Industrial output Jul 0200 China Retail sales Jul 0200 China Urban investment Jul 0900 Euro zone Industrial production Jun

(Reporting by Apeksha Nair in Bengaluru; Editing by Kenneth Maxwell)