PRECIOUS-Gold gains more than 1% on dip-buying; markets await US inflation data

(Updates with European morning trading)

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Gold and silver set for weekly gain

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Platinum, palladium poised for weekly losses

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US CPI data due at 8:30 a.m. ET (1330 GMT)

By Pablo Sinha

Feb 13 (Reuters) - Gold rose more than 1% on Friday, rebounding from Thursday's near ?one-week low, as bargain-hunters stepped in, with investors keeping ?an eye on key U.S. inflation data due later in the day for cues on the Federal Reserve's policy ?outlook.

Spot gold was up 1% at $4,969.85 per ounce as of 1000 GMT, and has ?gained 0.2% so far this week. U.S. gold futures for ?April delivery rose 0.9% ?to $4,990.30 per ounce.

"Dip-buying by market participants in Asia, where demand for gold has been particularly strong, appears to ?be driving the rebound in gold prices," said ?Hamad Hussain, a climate and commodities economist at Capital Economics. The Chinese gold market saw robust demand as it heads into the Lunar New ?Year holiday, while gold flipped to a ?discount in India ?this week for the first time in a month on subdued demand as volatile prices deterred buying. Gold dropped about 3% on Thursday, falling to ?its lowest in nearly a week, as strong U.S. jobs data dampened hopes ?of near-term Fed rate cuts. A break below $5,000 per ounce deepened losses, as selling pressure intensified. Data on Wednesday showed the United States added 130,000 jobs in January, compared to analysts' estimates of 70,000.

However, "the moves seem to be irrespective of what the market fundamentals are, ?not ?because of them, and the market fundamentals across the (precious metals) complex ?remain positive," said independent analyst Ross Norman.

Analysts at ANZ on Friday raised their gold ?forecasts to $5,800/oz for the second quarter, up from $5,400, noting that the metal remains an insurance asset against a plethora of uncertainties.

Investors are now looking out for the Consumer Price Index data, due later on Friday, to gauge the health of the labor market and the prospects of further rate cuts this year. Non-yielding bullion tends to do well in low-interest-rate environments.

Spot silver climbed 3.9% to $78.11 ?per ounce, rebounding from an 11% drop in the previous session. It was on track for a weekly gain of 0.8%.

Spot platinum rose 1.4% to $2,027.60 per ounce and palladium ?was up 1.7% at $1,644.24. Both metals ?were set to notch weekly losses. (Reporting by Pablo Sinha in ?Bengaluru; Editing by Diti Pujara)