PRECIOUS-Gold ticks up on softer US dollar, heads for weekly gain

July 25 (Reuters) - Gold prices inched higher in early Asian trading on Friday, buoyed by an overall weaker dollar, although signs of progress in trade negotiations between the U.S. and its trading partners kept gains in check.

FUNDAMENTALS

* Spot gold XAU= was up 0.1% at $3,371.86 per ounce, as of 0051 GMT. Bullion is up 0.6% this week. U.S. gold futures GCcv1 were little changed at $3,374.80.

* The U.S. dollar index .DXY was headed for its worst week in a month, making greenback-priced gold less expensive for other currency holders.

* The European Union and United States now appear to be heading towards a possible trade deal, according to EU diplomats, which would result in a broad 15% tariff on EU goods imported into the U.S., mirroring a framework agreement Washington struck with Japan.

* The S&P 500 and the Nasdaq notched record closing highs overnight as signs of easing global trade tensions lifted risk sentiment among investors. MKTS/GLOB

* Data showed U.S. jobless claims unexpectedly fell last week, signalling a steady labour market despite sluggish hiring making it harder for the unemployed to find work.

* The European Central Bank left interest rates unchanged on Thursday, pausing after seven straight cuts, and offered a modestly upbeat assessment of the euro zone economy.

* The Federal Reserve is also widely expected to leave rates unchanged at its July 29–30 meeting, but markets continue to price in a potential rate cut in September. FEDWATCH

* SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.24% to 957.09 metric tons on Thursday from 954.80 tons on Wednesday. GOL/ETF

* Spot silver XAG= was flat at $39.10 per ounce, platinum XPT= gained 0.4% to $1,413.55 and palladium XPD= climbed 0.8% to $1,237.35.