Gold reduction or economic data in the United States mixed


* housing starts and industrial production rose in the United States

* focus on the minutes of the Federal Reserve meeting on Wednesday

Gold fell Tuesday, as U.S. economic data were mixed with no further clues to the outlook for US interest rates this year, Reuters reported, and the dollar shrank after hitting a seven week low.

U.S. July consumer price index (CPI) were flat compared with the previous month, because the cost of gasoline fell for the first time in five months, a modest rise in core CPI, and the United States in July housing starts rose unexpectedly, more than expected in July industrial production growth from the previous month.

1907 GMT, spot gold rose 0.7% to $1347.95 an ounce, after a 1.3% increase earlier, then cut back.

United States gold futures closed up 0.7%, at $1356.90 an ounce.

"CPI data initially pushed up gold prices, but after that, Dudley, President of the New York fed, hinted that interest rates could rise as early as September," said Heraeus Metal Management, vice president of Perez-Santalla Miguel.

Federal funds rate futures fell after Dudley spoke. Dudley said that if the economy improves further, the Fed may raise interest rates in September.

Traders expect the Federal Reserve to raise interest rates by 55% in December, higher than Monday's 42%.

Atlanta Fed President Lockhart said the U.S. economy is strong enough to raise interest rates at least once or even two times before the end of the year.

Markets gathered Wednesday, 1800 GMT, and the Fed will release its July meeting minutes.

Spot silver up 0.2% to $19.84. Spot platinum touched an earlier three week low of $1105.50, a rebound of 0.7%, to $1114.99.

Spot platinum rose 1.4% to $703.50, hitting a three week low of $679.72 on Monday.