June 7 (Reuters) - Gold prices inched lower on Friday but were heading for their first weekly gain in three, with investors waiting for U.S. non-farm payrolls data later in the day for clues on the outlook for interest rate cuts.
FUNDAMENTALS
* Spot gold was down 0.2% at $2,371.04 per ounce, as of 0144 GMT. Bullion gained about 2% for the week so far.
* U.S. gold futures were unchanged at $2,384.50.
* The dollar hovered close to an eight-week low and benchmark 10-year U.S. Treasury yields hit their worst week since Dec 2023, making non-yielding bullion more attractive for investors.
* Gold prices are expected to hit another record high this year despite a dip in physical demand, consultancy Metals Focus said, as interest rate cuts arrive against a backdrop of U.S.-China tensions and conflict in Ukraine and the Middle East.
* Investors now await the non-farm payrolls data due at 1230 GMT to gauge the U.S. economy's health and if it will deter the Federal Reserve from cutting rates in September.
* Traders are currently pricing in about a 68% chance of a rate cut in September, according to CME FedWatch tool.
* Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
* The Perth Mint's gold product sales fell in May to their lowest level since March, while silver sales rose 16% for the month, the refiner said.
* Poland has increased its gold reserves, recently buying 5 tons of gold, and it plans to keep increasing such reserves, Polish central bank governor Adam Glapinski said.
* The London Bullion Market Association (LBMA) said it is reviewing allegations involving Indonesian state miner Aneka Tambang (Antam) over the purity of its gold products.
* Spot silver fell 0.5% to $31.16 per ounce, platinum was up 0.4% at $1,006.75 and palladium lost 0.2% to $928.25.
DATA/EVENTS (GMT) 1230 US Non-Farm Payrolls May 1230 US Manufacturing Payrolls May 0200 US Wholesale inventories April 0830 HK FX Reserves May (Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Janane Venkatraman )
