PRECIOUS-Gold rises on weaker dollar; investors await US jobs data

By Sarah Qureshi

June 30 (Reuters) - Gold edged higher on Monday, supported by a weaker U.S. dollar, while investors hunkered down for U.S. economic data due later this week for signals on the Federal Reserve's policy path.

Spot gold XAU= rose 0.6% to $3,292.39 per ounce as of 1220 a.m. EDT (1620 GMT) after reaching its lowest point since May 29 earlier in the session. The yellow metal was up for the second straight quarter, rising 5.4%.

U.S. gold futures GCcv1 was up 0.5% at $3,304.30.

"A weaker dollar today is providing a bit of support. But we're still within the well-defined range that has dominated since the middle of May," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

The dollar fell against the yen and hit its lowest in almost four years against the euro, as market optimism over U.S. trade deals bolstered bets for earlier interest rate cuts by the Federal Reserve.USD/

On the trade front, the U.S. and China resolved issues over rare earth minerals and magnet shipments last week, renewing hopes for further talks between the two superpowers. Elsewhere, Canada scrapped its digital services tax targeting U.S. tech firms late Sunday to revive stalled trade negotiations with the U.S.

Gold, traditionally considered a hedge during times of uncertainty, also thrives in a low-interest rate environment.

Investors now await the U.S. ADP employment data, due Wednesday, and Thursday's initial jobless claims data for hints on the central bank's potential policy path.

Citi analysts said in a note they expect gold prices to consolidate between $3,100 to $3,500 in the third-quarter of the year, noting that the late April peak of $3,500 may already be the high as the gold market deficit approaches its peak.

Spot silver XAG= eased 0.1% at $35.94 per ounce, while platinum XPT= fell 0.6% to $1,330.85, and palladium XPD= dropped 3.3% to $1,097.20. All the three-metals were headed for gains so far this quarter.