PRECIOUS-Gold headed for weekly gains on revived hopes of Fed rate cuts

Jan 17 (Reuters) - Gold prices firmed on Friday and were headed for a third straight week of gains after U.S. data this week hinted that the Federal Reserve might continue easing interest rates this year.

FUNDAMENTALS

Spot gold XAU= was flat at $2,715.21 per ounce as of 0047 GMT, hovering near a more than one-month peak hit on Thursday. Bullion has gained about 1% so far this week. GOL/

U.S. gold futures GCcv1 dropped 0.1% to $2,747.50.

Fed Governor Christopher Waller said three or four rate cuts are still possible this year if U.S. economic data further weakens.

The Fed's rate-cut hopes increased after the CPI data on Wednesday. The central bank is expected to hold the benchmark rate steady in the current 4.25%-4.50% range at its policy meeting on Jan. 28-29. FEDWATCH

Gold is used as an inflation hedge but higher interest rates dampen its appeal.

A barrage of U.S. data, including retail sales and initial jobless claims, also weighed on Treasury yields and the U.S. dollar, supporting gold. US/ USD/

U.S. inflation data for December 2024 indicates price pressures are continuing to ease, Richmond Fed President Thomas Barkin said.

However, concerns linger around the incoming Donald Trump administration's potential tariffs, which could further stoke inflation.

SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.43% to 868.78 tonnes on Thursday from 872.52 tonnes on Wednesday. GOL/ETF

Spot silver XAG= rose 0.1% to $30.82 per ounce, adding over 1% for the week.

Palladium XPD= eased 0.1% to $937.25 and platinum XPT= shed 0.1% to $931.85. Both were headed for weekly losses.

DATA/EVENTS (GMT)

0200 China Urban Investment(YTD) YY, Retail Sales YY Dec

0200 China GDP YY Q4

0200 China Unemp Rate Urban Area Dec

0700 UK Retail Sales MM, Retail Sales Ex-Fuel MM, Retail Sales YY Dec

1000 EU HICP Final MM, HICP Final YY Dec

1330 US Housing Starts Number Dec

1415 US Industrial Production MM Dec

(Reporting by Rahul Paswan in Bengaluru; Editing by Sumana Nandy)

((RahulKumar.Paswan@thomsonreuters.com ; If within U.S. +1 646 223 8780;;))