* Investors await results of ECB strategy review on Thursday
* Benchmark U.S. yields hit more than four-month low
July 8 (Reuters) - Gold prices reversed course to trade higher on Thursday as the U.S. dollar eased and yields extended their downward momentum, making non-yielding bullion more appealing to investors.
Spot gold rose 0.4% to $1,811.10 an ounce by 0914 GMT. U.S. gold futures were up 0.7% at $1,814.70.
"The general view for gold is upwards ... and the one obstacle in the market that prevents gold from rising and pulls it back is the dollar. With the dollar weakening somewhat, the metal is up again," said Commerzbank analyst Carsten Fritsch.
The dollar index , which measures the greenback against six other leading currencies, edged 0.1% lower. A weaker dollar makes gold more affordable for other currency holders.
Benchmark U.S. 10-year Treasury yields, meanwhile, were trading at a more than four-month low.
Commerzbank's Fritsch said there wasn't any "new surprise" in the minutes from the U.S. Federal Reserve's latest monetary policy meeting, adding that the substantial drop in bond yields is price-positive for gold.
The minutes from the Fed's June 15-16 meeting said that "various participants" felt conditions for reducing the central bank's asset purchases would be "met somewhat earlier than they had anticipated".
Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding bullion.
"The U.S. dollar could also turn from a tailwind to a headwind for bullion prices as a result of tighter U.S. monetary policy," Citi analysts said in a note.
Gold's rebound in the second quarter was transitory and markets will fail to revert above $2,000 an ounce in Citi's base-case outlook, they said, adding that buying sentiment is generally soft.
Attention is also focused on the European Central Bank, which will announce the outcome of an 18-month strategy review on Thursday, redefining its inflation target.
Elsewhere, silver traded flat at $26.12 an ounce,platinum fell 0.9% to $1,075.30 and palladium slipped 0.8% to $2,827.80.