* Dollar set for fourth consecutive monthly decline * Gold on track for first monthly fall in five * Silver heads for fifth straight monthly rise * Interactive graphic tracking global spread of coronavirus: open tmsnrt.rs/3aIRuz7 in an external browser (Recasts, updates prices) By Brijesh Patel Aug 31 (Reuters) - Gold reversed course to trade lower on Monday as the dollar recouped some losses, although the U.S. Federal Reserve's new policy framework that suggested interest rates would remain near zero for some time limited losses for the safe-haven bullion. Spot gold was down 0.2% to $1,961.54 per ounce by 0724 GMT, after hitting its highest since Aug. 19 at $1,976.14 in early Asian trade. Gold was down 0.5% so far this month. U.S. gold futures fell 0.3% to $1,968.80. Weighing on gold, the dollar index steadied against a basket of major currencies but was on track for a fourth consecutive monthly decline. "Choppiness in the U.S. dollar will spill over into how gold trades," said IG Markets analyst Kyle Rodda. "The greenback took a big spill on Friday as market participants digested what was coming out of the Jackson Hole Symposium, and the knock-on benefits to gold are still being felt." The Fed's new monetary policy strategy suggested that the U.S. central bank's key overnight interest rate, already near zero, would stay there for potentially years to come as policymakers woo higher inflation. Lower interest rates decrease the opportunity cost of holding nonyielding bullion. Gold has gained nearly 30% so far this year, notching an all-time high of $2,072.50 earlier this month, as investors seek to buy the metal as a hedge against possible inflation and currency debasement due to unprecedented money printing by central banks. "Gold is expected to retest the old highs again. I don't think anything has changed in terms of the underlined fundamentals," said Edward Meir, an analyst at ED&F Man Capital Markets. Elsewhere, silver jumped 1.2% to $27.82 per ounce and was heading for a fifth straight monthly gain, up more than 14%. Platinum was steady at $931.33 and palladium gained 0.4% to $2,214.54. (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Uttaresh.V)
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