PRECIOUS-Gold prices at 1-1/2-week low on dollar strength as Fed meeting looms

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* Fed likely to keep flexibility on tapering at meeting – MS

* Dollar firms near one-week peak

* Specs reduce gold bullish positions in week ended June 8- CFTC (Recasts, adds comments, and updates prices)

June 14 (Reuters) – Gold prices slipped on Monday to their lowest in more than a week, weighed down by a stronger dollar, while investors awaited cues from the Federal Reserve policy meeting this week with recent spikes in U.S. consumer prices seen as a temporary blip.

Spot gold was down 0.6% at $1,864.58 per ounce, as of 0311 GMT, its lowest since June 4.

U.S. gold futures fell 0.6% to $1,867.60 per ounce.

“The market is starting to anticipate maybe a modest pivot towards discussing taper and it’s sending investors into more of a either profit-taking or reducing gold and also currency positions,” said Stephen Innes, managing partner at SPI Asset Management.

“Because of this the dollar has also gotten a little bit stronger. I think primarily, the…

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