Bullion rose nearly 2 so far this week
Dot plot will shift to a lessdovish stance analyst
ECB cut interest rates for fourth time this year
Platinum, palladium set for weekly gains

Dec 13 Reuters Gold prices edged higher on Friday and were set for a weekly gain, driven by recent reports of top consumer China resuming gold purchases, and heightened expectations of an interest rate reduction by the Federal Reserve at its Dec. 1718 meeting.

Spot gold was up 0.1 at 2,684.87 per ounce, as of 0723 GMT. Bullion is headed for a weekly gain and has added nearly 2 so far this week.

U.S. gold futures inched lower at 2,706.40.

Traders39; attention is now on the Fed39;s decision on interest rates, and they see a 96.4 chance of a 25basispoint bp cut, CME39;s FedWatch Tool showed.

I think the Fed will deliver the expected 25bp cut, and the dot plot will shift to a lessdovish stance. While this could initially weigh on gold next week, it shouldn39;t come as a huge surprise, Matt Simpson, a senior analyst at City Index said.

Gold enjoyed a bullish run heading into this week39;s U.S. inflation report, but another sharp bearish reversal on Thursday should remind gold traders that complacency is the devil.

Gold prices fell more than 1 on Thursday on profittaking after the bullion briefly hit a fiveweek high earlier in the session.

U.S. producer prices rose more than expected in November amid a surge in the cost of food. Data on Wednesday showed that consumer prices increased by…