*
Silver, platinum, palladium set for monthly gains
*
Dollar on track for monthly fall
(Updates prices)
By Ashitha Shivaprasad
April 28 (Reuters) - Gold prices eased on Friday as the
dollar firmed in the run-up to U.S. inflation data, but economic
jitters kept safe-haven bullion on course for a second
consecutive monthly rise.
Spot gold edged 0.2% lower to $1,983.86 per ounce by
1145 GMT, but was up 0.8% for the month. U.S. gold futures eased 0.4% to $1,992.00.
While prospects of another rate hike are pressuring gold,
bullion was, for the month, supported by the weaker dollar and
the "safe-haven trade resulting from fears of an economic
contraction and ongoing turbulence in the American banking
sector," said Ricardo Evangelista, a senior analyst at
ActivTrades.
But "a sudden deterioration in the bank sector crisis could
trigger a rush to safe-havens (and) likely to see gold prices
soar above previous records," Evangelista added.
Gold scaled a one-year peak of $2,048.71 in mid-April as the banking crisis unfolded. The dollar edged up for the day but was headed for a monthly decline. A weaker dollar makes bullion more affordable for overseas buyers. Investor focus will now be on the U.S. core Personal Consumption Expenditures index data for March due at 1230 GMT.
The U.S. Federal Reserve is widely expected to raise
interest rates by 25 basis points on May 2-3. Elevated rates
dull zero-yielding bullion's appeal. Gold investors will be hoping that the Fed is close to the
final hike in this current cycle, Kinesis Money analyst Rupert
Rowling wrote in a note.
"If that does prove to be the case, gold has sufficient
support to keep it trading in the high $1,900s for the
foreseeable future, while hints of further hikes needed may push
it back down towards $1,900," he added.
Also on the radar were developments surrounding the U.S.
debt ceiling.
Silver fell 0.5% to $24.84 per ounce, platinum shed 0.7% to $1,069.47, while palladium rose 0.4% to
$1,501.95 -- all headed for monthly gains.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by
Krishna Chandra Eluri and Subhranshu Sahu)
