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Silver and platinum heads for weekly losses

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Palladium up over 4% for the week

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US CPI, PPI due next week

(Adds comments, details and updates prices)

By Daksh Grover

Aug 9 (Reuters) - Gold prices were subdued on Friday and

headed for a weekly decline, while investors awaited further

cues to gauge the size of a potential U.S. interest rate cut in

September.

Spot gold was down 0.2% at $2,421.31 per ounce, as of

0402 GMT, after rising more than 1% on Thursday.

Bullion was on track for its biggest weekly fall since June

7, and fell as much as 3% on Monday after investors liquidated

positions in tandem with a broader equities selloff.

U.S. gold futures dipped 0.1% to $2,460.80.

"Price activity for gold has been relatively steady today

with investors taking a breather after a roller-coaster week,"

said Tim Waterer, chief market analyst, KCM Trade.

Federal Reserve policymakers are confident that cooling

inflation will allow for future rate cuts, which will be guided

by economic data rather than stock market fluctuations,

according to three U.S. central bankers on Thursday.

"Fundamentally speaking, gold is poised to benefit from

either increased risk aversion or from expectations of looser

monetary conditions. There are multiple scenarios, which could

play out in coming months, which could drive the gold price to

fresh all-time highs," Waterer said.

Non-yielding bullion's appeal tends to shine in a low

interest rate environment.

Markets see a 55% chance of a 50-basis-points cut in

September, according to the CME FedWatch Tool, with an

additional cut anticipated in December.

Meanwhile, data on Thursday showed U.S. jobless claims fell

more than expected last week, suggesting fears the labour market

is unravelling were overblown.

Investors' focus shifts to the U.S. consumer price index

(CPI) and producer price index (PPI) due next week for further

insights into the Fed's policy path.

Spot silver was up 0.3% at $27.66 per ounce and

platinum rose 0.7% to $937.65. Both metals were poised

for weekly losses.

Palladium gained 0.8% to $930.08 and was up 4.4% for

the week.