Bullion up over 1 for the week
Silver, platinum, palladium head for weekly gains
Gold still poised to make possible run at 2,500 analyst

Aug 16 Reuters Gold prices steadied on Friday and were headed for a weekly gain on optimism about a U.S. interest rate cut, while traders await Federal Reserve Chairman Jerome Powell39;s speech due next week for cues on the size of the cut.

Spot gold was nearly unchanged at 2,455.50 per ounce, as of 0618 GMT, but climbed above 1 so far this week. U.S. gold futures were flat at 2,493.00.

The bullish outlook for gold remains intact given the lower trajectory expected for global interest rates. The precious metal still poised to make a possible run at 2,500, said Tim Waterer, chief market analyst, KCM Trade.

But in the absence of a pickup in safehaven demand, it may require the dollar and bond yield to take a step lower for gold to reach the 2,500 level.

U.S. economic data this week eliminated fears about a recession but traders are convinced the Fed will slash rates on in September.

Markets see a 75 chance of a 25basispoint cut next month and a 25 chance of a 50 bps reduction, the CME FedWatch tool showed. Traders were evenly split at the start of the week between the two cut options.

A low interest rate environment tends to boost nonyielding bullion39;s appeal.

Minutes of the Fed39;s July policy meeting are due on Wednesday and Powell will speak on the U.S. economic outlook next Friday at the Jackson Hole symposium.

Gold is…