PRECIOUS-Gold set for weekly rise as market awaits Trump's policy moves

* Bullion has gained about 1.3% so far this week * Silver, palladium, platinum set for weekly gains * Gold expected to grow gradually in 2025 - analyst (Updates with mid-session trading) By Daksh Grover Jan 3 (Reuters) - Gold prices firmed near three-week highs on Friday on a softer U.S. dollar and safe-haven flows, with the metal set for a weekly gain as attention turned to upcoming U.S. economic data and President-elect Donald Trump's proposed policy changes. Spot gold XAU= was flat at $2,655.38 per ounce as of 0756 GMT, hitting its highest level since Dec. 13 earlier in the session. Bullion is up about 1.3% for the week so far. U.S. gold futures GCcv1 rose 0.1% to $2,670.70. The dollar index .DXY fell 0.3%, making dollar-priced bullion a tad more affordable for holders of other currencies. "We have seen an uptick in safe-haven flows, which has been to the benefit of gold," said Tim Waterer, chief market analyst at KCM Trade. "Any pullback in the U.S. dollar could prove to be a catalyst for gold to break out higher." Trump's inauguration on Jan. 20 has heightened uncertainty, with his proposed tariffs and protectionist policies expected to be inflationary and potentially spark trade wars. On the geopolitical front, Israeli air strikes killed at least 68 Palestinians in Gaza. Meanwhile, Russia launched a drone strike on the Ukrainian capital Kyiv on Wednesday, causing damage in at least two districts. On the economic front, a flurry of U.S. data next week -- including the nonfarm payrolls report and minutes of the Federal Reserve's meeting -- will give traders cues on monetary policy given the Fed has lowered its forecast for rate cuts in 2025. Gold flourishes in low interest rate environments and serves as a hedge against economic and geopolitical uncertainties. "Global trends will continue to play a big role and continue to move the gold market forward. The metal will grow gradually, showing stable growth values throughout the year," said Julia Khandoshko, CEO at broker Mind Money. Spot silver XAG= rose 0.1% to $29.59per ounce, platinum XPT= was steady at $923.10, and palladium XPD= inched up 0.1% at $911.90. All three metals were on track for weekly gains. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/4gJvoOE ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Daksh Grover in Bengaluru; Editing by Alan Barona, Sonia Cheema and Savio D'Souza) (([email protected];))