June 28 (Reuters) - Gold prices edged lower on Friday

but were headed for their third consecutive quarterly rise,

while investors looked toward key U.S. inflation data due later

in the day that could throw some light on the Federal Reserve's

stance on interest rate cuts.

FUNDAMENTALS

* Spot gold was down 0.3% at $2,321.39 per ounce, as

of 0157 GMT. Prices are up about 4% for the quarter. Bullion

remained flat for both the week and the month.

* U.S. gold futures were down 0.2% at $2,332.10.

* The dollar was up 0.2%, making gold more expensive

for other currency holders, while benchmark 10-year yields

also edged higher for the day.

* The personal consumption expenditures (PCE) price index

report due at 1230 GMT is on investors' radar to get more cues

on the timing and scale of possible rate cuts this year.

* Ebbing economic momentum was underscored by data showing

business spending on equipment declined in May, while a slump in

exports pushed up the goods trade deficit.

* In its third estimate of gross domestic product for the

January to March quarter, the government confirmed that economic

growth moderated sharply in the first quarter.

* U.S. Federal Reserve Governor Michelle Bowman reiterated

on Thursday that she is still not ready to support a central

bank rate cut with inflation pressures still elevated.

* Higher interest rates increase the opportunity cost of

holding non-yielding bullion.

* Spot silver fell 0.5% to $28.91 per ounce, platinum

was up 0.7% to $994.42 and palladium gained 1.5%

to $943.22.

DATA/EVENTS (GMT)

0600 UK GDP QQ, YY Q1

0645 France CPI (EU Norm) Prelim YY, MM June

0645 France CPI Prelim MM NSA June

0645 France Producer Prices YY May

0755 Germany Unemployment Chg, Rate SA June

1230 US Cosnumption, Adjusted MM May

1230 US Core PCE Price Index MM, YY May

1230 US PCE Price Index MM, YY May

1400 US U Mich sentiment Final June

(Reporting by Sherin Elizabeth Varghese in Bengaluru)