* Spot gold up over 6% for the week

* Trump says he thinks war with Iran will end 'pretty soon'

* US NFP data due at 1230 GMT

* Silver, platinum and palladium also head for weekly gains

(Updates for EMEA morning session)

By Pablo Sinha

Aug 7 (Reuters) - Gold gained more than 1% on Friday and was

on track for its biggest weekly rise since January, as

expectations of U.S. rate hikes receded and inflation worries

tied to the U.S.-Iran peace deal eased, with investors also

awaiting U.S. nonfarm payrolls data.

Spot gold was up 1.6% at $4,308.92 per ounce by 0845

GMT, after hitting a seven-week high on Thursday. Prices have

gained over 6.6% for the week so far.

U.S. gold futures rose 1.6% to $4,367.90.

"Gold is a derivative of Fed policy expectations at the

moment. The marginal drop in the implied probabilities of Fed

rate hikes, along with the belief that Chairperson Warsh may be

less of a policy hawk than expected, has driven the metal

higher," said Kyle Rodda, a senior financial market analyst at

Capital.com.

Traders currently see a 55% chance of a U.S. rate hike in

September, compared to 67% last week, according to the CME

FedWatch Tool.

U.S. President Donald Trump told reporters that he believed

the war with Iran would be over soon.

Crude oil prices were headed for a weekly loss. Falling

energy costs can alleviate inflation concerns, leading investors

to scale back bets on higher interest rates. Although gold is

regarded as an inflation hedge, its appeal tends to diminish in

a high-rate environment since it offers no yield.

The U.S. Labor Department's nonfarm payrolls report for July

is due at 1230 GMT.

"Bullion may pare some of this week's gains, with its 50-day

SMA potentially offering support, should the US jobs market

demonstrate its resilience once more, while adding upside risks

to the inflation and Fed rate outlooks," said Han Tan, chief

market analyst at Bybit.

UBS said it expects gold prices to climb to $5,000 per ounce

in the first half of 2027.

Meanwhile, India's gold discounts widened this week as

retail buyers remained on the sidelines after prices hit a more

than one-month high, while activity in top consumer China also

moderated.

Spot silver climbed 4.5% to $64.26, platinum

rose 2.4% to $1,770.20 and palladium gained 2.3% to

$1,401.71. All three metals were headed for weekly gains.