Gold heads for weekly gain as Middle East tensions spur safe-haven demand

June 13 (Reuters) - Gold prices climbed on Friday and were poised for a weekly gain, as Middle East tensions boosted demand for safe-haven assets, while a weaker dollar and expectations of imminent interest rate cuts by the Federal Reserve also supported bullion.

FUNDAMENTALS

Spot gold XAU= was up 0.8% at $3,412.29 an ounce, as of 0028 GMT. Bullion has gained 3.1% so far this week.

U.S. gold futures GCcv1 gained 1.2% to $3,384.40.

Gold prices rose as investors turned to safe-haven assets following reports that Israel has begun carrying out strikes on Iran. Two U.S. officials said on Thursday that the United States had no involvement in the operation.

U.S. President Donald Trump said on Wednesday that U.S. personnel were being moved out of the region as it could be a "dangerous place" and that the United States would not allow Iran to have a nuclear weapon.

The U.S. dollar index .DXY fell to its lowest level in more than three years, making dollar-priced gold more affordable for overseas buyers. USD/

Signaling a cooling labor market and subdued inflation pressures, the number of Americans filing new applications for unemployment benefits held at an eight-month high last week, while slowing domestic demand helped to restrain producer prices in May.

The data was released a day after the Labor Department reported a moderate rise in consumer prices in May.

Meanwhile, The International Monetary Fund said on Thursday that its next global growth forecast in July will take into account both positive and negative trade developments but declined to predict a tariff-driven GDP downgrade similar to that released by the World Bank this week.

Elsewhere, spot silver XAG= was up 0.3% at $36.25 per ounce, platinum XPT= rose 0.2% to $1,297.72, while palladium XPD= gained 0.6% to $1,062.35. All three metals were headed for weekly gain.