Sept 11 (Reuters) - Gold fell early on Monday after hitting
its highest level in over a year in the previous session, with a
recovery in the U.S. dollar reining in any upward momentum in
the metal.  
    
    FUNDAMENTALS    
    * Spot gold        was down 0.7 percent at $1,337.00 an
ounce by 0053 GMT. It hit its highest since August 2016 at
$1,357.54 the session before.
    * U.S. gold futures         for December delivery were also
down 0.7 percent at $1,341.70 an ounce.
    * The U.S. dollar won a reprieve from risk aversion on
Monday after North Korean dictator Kim Jong Un decided to hold a
party over the weekend rather than launch another missile,
tempering safe havens like the yen and Treasuries.             
    * North Korea warned on Monday the United States would pay a
"due price" for spearheading a U.N. Security Council resolution
against its latest nuclear test, as Washington presses for a
vote on a draft resolution imposing more sanctions on Pyongyang.
                        
    * President Donald Trump signed a bill on Friday extending
the government debt limit for three months and providing about
$15 billion in hurricane-related aid, bringing his surprising
deal with Democratic congressional leaders this week to
completion.             
    * It is too soon to predict when the Federal Reserve should
next raise U.S. interest rates as it continues to tighten
policy, given "cross currents" in the economy and markets, New
York Fed President William Dudley said on CNBC TV on Friday.
            
    * European Central Bank policymakers agreed at their meeting
on Thursday that their next step would be to begin reducing
their monetary stimulus, three sources with direct knowledge of
the discussion said.             
    * Bank of England rate setters won't shock markets with any
policy moves when they meet next week as a struggling economy
and Brexit fears offset any concerns over inflation sailing well
above target.             
    * China's central bank plans to scrap reserve requirements
for financial institutions settling foreign exchange forward
yuan positions with effect from Monday, four sources with direct
knowledge of the matter said on Friday.             
    * Speculators raised their net long position in COMEX gold
for the eighth straight week to the highest in nearly a year in
the week to Sept. 5.        
    * SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.28 percent to
834.50 tonnes on Friday from 836.87 tonnes on Thursday.
         
    
    DATA/EVENT AHEAD (GMT)
    No major data or event scheduled for Monday, Sept. 11.    
    

 (Reporting by Apeksha Nair in Bengaluru; Editing by Joseph
Radford)