Gold eyes quarterly gain; spotlight on US inflation data
Bullion up about 4% for the quarter
U.S. PCE data due at 1230 GMT
Palladium up over 4% for the day, down for third straight quarter
Updates prices as of 1145 GMT
By Daksh Grover
June 28 (Reuters) -Gold prices edged up on Friday and were poised for a third straight quarterly rise, while investors waited for U.S. inflation data for fresh clues on the Federal Reserve's interest rate stance.
Spot gold XAU= was up 0.3% at $2,334.19 per ounce, as of 1145 GMT. Prices have gained about 4% for the quarter.
U.S. gold futures GCcv1 rose 0.3% to $2,334.50.
"Gold has so far managed to hold firm with the current consolidating phase being so shallow that hedge funds who bought into the rally back in February and March have yet to be challenged," said Ole Hansen, head of commodity strategy at Saxo Bank.
In May, bullion rose to an all-time high as a cocktail of factors from rate cut expectations to China's stimulus measures to geopolitical tensions lifted demand.
"As long as the metal holds above $2,200, I see no major risk of a forced long-liquidation phase emerging. Incoming data will be key, but overall I see no reason why gold can not reach $2,500 before year end, supported by multiple drivers," Hansen added.
The U.S. personal consumption expenditures (PCE) numbers, the Fed's preferred inflation measure, are due at 1230 GMT.
A soft set of PCE figures is required to keep alive hopes of a Fed easing and further support gold, City Index senior analyst Matt Simpson said. FEDWATCH
Gold rose more than 1% in the previous session after data showed a slowdown in U.S. economic activity.
Meanwhile, Fed Governor Michelle Bowman maintained her stance that she is still not ready to support a central bank rate cut with inflation pressures still elevated.
Spot silver XAG= rose 0.9% to $29.32, platinum XPT= gained 2.8% to $1,014.90. Both metals were set for quarterly gains.
Spot palladium XPD= rose 4.3% to $969.00, but was headed for a third straight quarterly drop.
Spot gold price in USD per oz https://reut.rs/4cY8H75
Reporting by Daksh Grover and Sherin Elizabeth Varghese in Bengaluru; editing by Miral Fahmy
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