PRECIOUS-Gold holds ground on US Fed rate-cut hopes, lower yields

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Bullion on track for its biggest weekly decline since June 7

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Silver, platinum head for weekly losses

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U.S. consumer price index due next week

(Recasts, adds comments, updates prices as of 1351 GMT)

By Rahul Paswan

Aug 9 (Reuters) - Gold prices held steady on Friday after a sharp rise in the previous session, buoyed by a dip in U.S. Treasury yields, as investors grew confident the Federal Reserve will lower interest rates in September.

Spot gold was down 0.1% to $2,422.99 per ounce as of 1351 GMT, after a 1.9% rise on Thursday. U.S. gold futures held steady at $2,462.

However, the bullion was down about 0.8% so far this week, on track for its biggest weekly decline since June 7. Prices fell as much as 3% on Monday after investors liquidated positions in tandem with a broader equities sell-off.

"In the medium term, the outlook for gold remains positive, with any dips likely to be short-lived due to underlying macroeconomic factors," said Zain Vawda, market analyst at MarketPulse by OANDA.

"Yesterday's U.S. jobless claims data eased recession concerns, boosting gold prices. Additionally, comments from the Fed this week have supported the notion that rate cuts may be forthcoming."

The dollar was down 0.1% against its rivals, making gold more attractive for other currency holders, while the Benchmark 10-year note yields slipped.

Fed's policymakers are increasingly confident that inflation is cooling enough to allow interest-rate cuts ahead, and they will take their cues on the size and timing of those rate cuts not from stock-market turmoil but from the economic data.

Investor focus shifts to the U.S. consumer price index (CPI) due next week for further insights into the Fed's policy path.

"We maintain a positive view on gold as a diversifier hedge against turmoil elsewhere," said Ole Hansen, head of commodity strategy at Saxo Bank in a note.

"If the Federal Reserve begins cutting rates, potentially as early as next month, interest rate-sensitive investors may return to gold via ETFs."

Spot silver was down 0.9% to $27.29 per ounce and platinum fell 0.9% to $922.05. Both metals were poised for weekly losses.

Palladium fell 1.3% to $910.25, but was set for a weekly gain.

(Reporting by Rahul Paswan, Sherin Elizabeth Varghese and Brijesh Patel in Bengaluru; Editing by Shreya Biswas)