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Bullion hit its lowest since May 9 earlier in the session

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Silver, platinum, palladium set for weekly dip

(Recasts as of 1018 GMT)

By Daksh Grover

May 24 (Reuters) - Gold prices rose on Friday, but were

headed for their first weekly fall in three as expectations for

interest rate cuts began to fade following the hawkish tone

adopted in the U.S. Federal Reserve's latest minutes.

Spot gold rose 0.54% to $2,340.95 per ounce, as of

1018 GMT, after hitting its lowest since May 9 earlier. Bullion

hit a record high of $2,449.89 on Monday, but has fallen about

5% since then.

U.S. gold futures was up 0.21% at $2,342.10.

"As the market starts to correct lower, unquestionably, you

will find those who missed the rally jumping in on what they

perceive to be an opportunity to participate," independent

analyst Ross Norman said.

The dollar index was slightly down making

greenback-priced bullion less expensive to overseas buyers.

Minutes from the Federal Reserve's last meeting published

this week showed a live debate among policymakers as to whether

current rates are sufficiently restrictive to cool inflation.

While the policy response for now would "involve maintaining"

interest rates at current levels, the latest Fed minutes

reflected discussions of possible hikes.

Higher interest rates make non-yielding gold a less

appealing investment.

Traders' bets signalled growing doubts that the Fed will

cut rates more than once in 2024, currently pricing in a 66%

chance of a rate cut by November according to the CME FedWatch

Tool. Previous expectations were for a likely first rate cut in

September.

"This shift drove an increase in Treasury yields and a

stronger dollar, punishing the price of the non-yielding

precious metal," said Ricardo Evangelista, Senior Analyst at

ActivTrades.

Spot silver rose 1.4% to $30.53. It hit a 11-year

high on Monday.

Platinum edged 0.4% higher to $1,023.20 and palladium

gained 0.2% to $971.05. All three metals were headed for

weekly losses.

Gold holdings in SPDR Gold Trust fell 0.62% on Thursday,

while holdings in iShares Silver Trust rose 0.20%.