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Gold was little changed on Friday ahead of a key U.S. inflation report, but prices were on track for their first weekly drop in six weeks on easing concerns of a major escalation of the Middle East crisis.

Spot gold edged 0.1% higher at $2,334.57 per ounce by 0409 GMT. U.S. gold futures rose 0.2% at $2,346.70.

However, for the week, prices were down 2.3%, set for their biggest weekly drop since early December, after a major escalation in the Middle East crisis was avoided. Prices were down nearly $100 from an all-time high of $2,431.29 scaled on April 12.

Prices are now somewhat steady as they remain sensitive to expectations around rate cuts, more so after "U.S. economic data releases last night provided some dilemma with a significant weakening of growth, while inflationary pressures were slow to abate", said IG market strategist Yeap Jun Rong.

Data showed that U.S. economic growth slowed more than predicted in the first quarter, but an increase in inflation underlined recent remarks from Federal Reserve members implying the central bank was in no urgency to cut interest rates.

Higher rates reduce the appeal of holding non-yielding gold.

Focus now turns to March's core Personal Consumption Expenditures (PCE) index data due later on Friday - the Fed's preferred measure of inflation - for further clues on the U.S. rate outlook.

A significant acceleration in the PCE numbers could further breed expectations that we may only see one rate cut from the Fed this year, Jun Rong said.

The dollar index was headed for its biggest weekly dip since early March, making the greenback-priced bullion less expensive for other currency holders.

Spot silver rose 0.2% to $27.49 per ounce, spot platinum rose 0.8% to $921.45 and palladium gained 1.4% to $988.22. All three metals were headed for weekly declines.