* Gold may break $1,286 resistance, edge up to $1,290- technicals
* Platinum heading for 5th straight weekly loss
* Palladium on track for first weekly gain in four (Updates prices)
By Brijesh Patel
May 24 (Reuters) - Gold steadied on Friday, after rising more than 1% in the previous session en route to a weekly gain, propped up by a weaker dollar and expectations for a U.S. interest rate cut, offsetting pressure from a rebound in equities.
Spot gold XAU= gained 0.1% to $1,283.91 per ounce as of 1:33 p.m. EDT (1733 GMT). Prices rose as much as 1.1% to a one-week peak of 1,287.23 on Thursday. The metal has risen about 0.5% so far this week.
U.S. gold futures for June GCcv1 settled down 0.1% at $1,283.60.
Underpinning gold, the dollar moved away from two-year highs after weak U.S. durable goods data and manufacturing activity data ignited worries that the trade conflict with China may hurt the world's largest economy. USD/ had durable goods number that missed expectations. Typically, gold would rally on the news like that, but right now equities are trading higher, which is pressuring gold prices," said Bob Haberkorn, senior market strategist at RJO Futures.
Financial markets around the world rose after comments from U.S. President Donald Trump drove hopes of progress in U.S.-China trade talks. MKTS/GLOB
Escalating trade tensions and weak data have fueled rate cut expectations from the U.S. Federal Reserve, analysts said. Lower interest rates tend to support gold since it reduces the opportunity cost of holding the non-yielding asset. Fed is on hold and the market thinks the likely next move will be a cut deep into a long expansion," said Tai Wong, head of base and precious metals derivatives trading at BMO.
"You would need the Fed to clearly look to cut to stir it up, and for a major rally (in gold), you'd need more quantitative easing."
Uncertainty in the Middle East also supported the safe-haven metal. Trump said he would send about 1,500 American troops to the Mideast, mostly as a protective measure. the technical front, spot gold may break a resistance at $1,286 and edge up to the next resistance at $1,290, according to Reuters technical analyst Wang Tao. other precious metals, silver XAG= fell 0.2% to $14.56 per ounce, while palladium XPD= rose 2% to $1,336.51. Palladium rose more than 1% so far this week and is on track for its first weekly gain in four.
Platinum XPT= gained 1.1% to $802.25 an ounce, having touched its lowest since Feb. 15 at $791 in the previous session, putting it on track for its fifth straight weekly loss.
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