By Samuel Indyk LONDON (Reuters) – The British pound eked out gains against the U.S. dollar on Monday, recovering after falling to a 16-month low, as tentative hopes for progress in talks between Russia and Ukraine dampened demand for U.S. currency and other safe assets. The market was also looking to policy announcements from the Bank of England and U.S. Federal Reserve later this week. Remarks from Ukrainian and Russian officials that progress in diplomatic talks could be established in the coming days helped the pound’s recovery, according to Rabobank. “This has led to a modest reduction in…