* US PCE data due on Thursday
* Gold hits highest since May 11
* Dollar touched lowest since late August
Nov 28 (Reuters) - Gold rose for a fourth consecutive session on Tuesday and hit a more than six-month high, driven by a retreating dollar and hopes that the U.S. Federal Reserve is done with its interest rate hikes.
Spot gold gained 0.7% to $2,027.09 per ounce by 9:46 a.m. ET (1446 GMT), highest since May 11.
U.S. gold futures for December delivery rose 0.8% to $2,027.70 per ounce.
Gold continues to be bullish in the near term, with the dollar index in a downtrend on hopes the Fed will no longer raise interest rates and will maybe even cut rates by springtime, according to Jim Wyckoff, senior analyst at Kitco Metals.
Traders widely expect the U.S. central bank to leave rates unchanged in December, and are pricing in about a 50% chance of cuts in May next year, CME's FedWatch Tool shows.
Lower interest rates boost the appeal of gold as the opportunity cost of holding non-interest-bearing assets decreases.
Making bullion less expensive for overseas buyers, the dollar index touched its lowest since late August. The 10-year Treasury yield hovered over a two-month low. [USD/
Investors will also keep tabs on Thursday's U.S. Personal Consumption Expenditures (PCE) data, the Fed's preferred inflation indicator, for further insights into the interest rate outlook. Focus is also on the revised U.S. third-quarter GDP figures scheduled for Wednesday.
If GDP numbers and inflation indicators are stronger than expected, it will dent traders' enthusiasm in bullion but on the other hand a tamer inflation report and a slightly weaker GDP number will see some more buying interest in gold, Wyckoff added.
Silver rose 0.7% to $24.78 per ounce, platinum was up 1% to $928.28. Palladium fell 1.4% to $1,055.20 per ounce.
(Reporting by Anushree Mukherjee in Bengaluru; Editing by Krishna Chandra Eluri)