April 26 (Reuters) - Gold prices edged lower on Friday and were set for a weekly decline as investor attention turned to key U.S. inflation data for cues on the Federal Reserve's interest rate trajectory.
FUNDAMENTALS
* Spot gold XAU= dipped 0.1% to $2,331.15 per ounce as of 0136 GMT. Prices are down $100 from the all-time high of $2,431.29 scaled on April 12, fuelled by geopolitical turmoil.
* Bullion prices are down 2.5% so far for the week.
* U.S. gold futures GCcv1 were unchanged at $2,343.50 per ounce.
* Markets are awaiting U.S. March personal consumption expenditure (PCE) data - the Fed's preferred inflation gauge - due at 1230 GMT.
* The U.S. economy grew at its slowest pace in two years in the first quarter but an increase in inflation reinforced expectations the Fed would cut interest rates before September. FEDWATCH
* Recent remarks from Fed officials hinted the central bank was in hurry to cut rates.
* Higher rates reduce the appeal of holding -yielding gold.
* Top consumer China's gold imports via Hong Kong jumped 40% in March from the previous month, data showed.
* JP Morgan said on Thursday that gold's structural bull case remains intact, with a peak target of $2,600.
* Newmont Corp NEM.N beat Wall Street estimates for first-quarter profit as the world's largest gold miner benefited from robust production, higher prices and lower operating expenses.
* Elsewhere, the Bank of Japan is set to project inflation will stay its 2% target in the coming years and signal its readiness to raise rates from -zero in the hope of keeping yen bears from pushing the currency to fresh 34-year lows.
* Spot silver XAG= fell 0.1% to $27.40 per ounce, platinum XPT= was up 0.6% at $919.90, while palladium XPD= gained 1.1% to $984.73.
DATA/EVENTS (GMT)
1230 US Consumption, Adjusted MM March
1230 US Core PCE Price Index MM, YY March
1230 US PCE Price Index MM, YY March
1400 US U Mich Sentiment Final April
(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Savio D'Souza)