PRECIOUS-Gold edges up on weaker dollar, China data fuels growth concerns

* Gold up about 0.6% so far this week
* Dollar down for third session in a row
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

(Updates prices)
By Eileen Soreng
July 12 (Reuters) - Gold rose on Friday and was on track to
post a weekly gain, supported by an easing dollar and weaker
than expected Chinese trade data which stoked global growth
concerns.
Spot gold XAU= was up 0.3% at $1,408.27 per ounce at 1136
GMT. Gold has risen about 0.6% so far this week.
U.S. gold futures GCv1 rose 0.2% to $1,409.8 an ounce.
"We have (China's) trade data out this morning which
disappointed mainly on the import side, suggesting the Chinese
economy is still struggling," said Julius Baer analyst Carsten
Menke.
"This provided fuel to the growth worries, so that's why
gold as a safe haven is benefiting."
China's exports fell in June as the United States ramped up
trade pressure, while imports shrank more than expected,
pointing to further strains on the world's second-largest
economy. Also helping gold was the dollar index .DXY , which eased
for a third straight session as stronger-than-expected U.S.
inflation data failed to shake convictions that the Federal
Reserve will start cutting interest rates this month. USD/
Despite the robust core U.S. consumer price index data,
money markets still indicated one rate cut at the end of July
and a cumulative 64 basis points in cuts by the end of 2019.
"The comments from the Fed and the minutes this week were on
the dovish side and have given the market hope that there might
be a chance of a 50 basis point cut," said ABN Amro analyst
Georgette Boele.
Fed Chair Jerome Powell indicated on Thursday that a rate
cut is likely at the Fed's next meeting as businesses slow
investment due to trade disputes and their impact on global
growth. Spot gold has risen more than 11% since it touched the
year's low of $1,265.85 per ounce in May, mainly on expectations
of aggressive monetary policy easing and growth worries.
"The market is clearly more aggressive than we are, so there
is some potential for disappointment on the rate side," Menke
said.
"So, if we don't get three rate cuts by the end of the year
this could be a trigger for a little bit of a short-term
correction in gold."
In the physical market, gold buying stalled in top Asian
hubs this week as consumers sold back bullion to cash in on the
steep price rally. A recent import duty hike further dented waning interest in
an Indian market hit by a surge in local rates.
Elsewhere, silver XAG= and platinum XPT= were up 0.1% at
$15.13 and $821 per ounce respectively.
Palladium XPD= fell 0.2% to $1,557.50 an ounce, edging
away from a 16-week peak of $1,605.52 touched in the previous
session.