PRECIOUS-Gold price poised for biggest quarterly gain since 2016

* Bullion up 14% so far for the quarter * Gold to rise to $2,900/oz over next 12 months, analyst says * Silver set for fourth consecutive quarterly rise * Palladium on track for quarterly gain (Updates as of 1203 GMT) By Anushree Mukherjee Sept 30 (Reuters) - Gold eased from its recent record high on Monday, but was still set for its biggest quarterly gain in more than eight years on the back of geopolitics and the U.S. Federal Reserve's rate cut. Spot gold XAU= was down 0.6% to $2,641.50 per ounce as of 1203 GMT and U.S. gold futures GCcv1 fell 0.2% to $2,663.50. Bullion has risen 14% so far this quarter, its best since January 2016. It is up nearly 6% this month, after reaching a record high of $2,685.42 on Thursday, fuelled by the Fed's half-percentage-point cut, China's initiation of stimulus measures, and escalating conflict in the Middle East. "We look for the next move higher to come from ETF investors, holdings of which are still well below the peak," UBS analyst Giovanni Staunovo said. GOL/ETF "Weaker U.S. economic data should allow the Fed to cut further and allow gold to rise to $2,900 per ounce over the next 12 months." Investors are looking ahead this week to U.S. ADP employment statistics and non-farm payrolls data later this week. Speeches from Fed Chair Jerome Powell and Governor Michelle Bowman later in the day could shed some light on the policy outlook. Analysts said bullion's gains on Monday were restricted on some profit-taking and a boost to risk sentiment after Chinese shares were poised for their best day in 16 years. MKTS/GLOB Recent strength in Chinese stocks might suggest a scaling back in gold positions on the fringe, said independent analyst Ross Norman. When risk appetite rises, investors shy away from gold, typically seen as a safe-haven asset in uncertain times. Among other metals, spot silver XAG= was down 1.1% at $31.29 per ounce, after hitting a 12-year high last Thursday and is set for quarterly rise of 8%, its fourth consecutive gain. "If monetary policy continues to loosen as expected, this could help silver continue this uptrend," said Kinesis Money market analyst Carlo Alberto De Casa in a note. Platinum XPT= shed 1.8% to $982.50. Palladium XPD= declined 0.8% to $1,002.25, but was headed for a quarterly gain. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Gold heads for best quarterly gain since 2016 https://reut.rs/3N4yMWY Silver surges to over a decade highs https://reut.rs/4dn9vlr ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Anushree Mukherjee in Bengaluru, additional reporting by Swati Verma; Editing by Alexander Smith and Louise Heavens) (([email protected];))