* SPDR Gold holdings rise 0.5% on Wednesday
* Gold may see strong support at $1,330/oz - analyst
* Palladium hits more than one-month high (Updates prices)
June 13 (Reuters) - Gold prices advanced on Thursday asdemand for the safe-haven metal rose on expectations of aninterest rate cut by the U.S. Federal Reserve following softinflation data, and on escalating trade tensions between theworld's top two economies.
Spot gold XAU= was up 0.3% at $1,337.41 per ounce, as of0706 GMT. U.S. gold futures GCv1 were also 0.3% higher, at$1,341.40 an ounce.
"We can see strong support at $1,330 for gold, and the metallooks to trade upside with expectations of lower interestrates," said Peter Fung, head of dealing at Wing Fung PreciousMetals.
"Also, we are still worried about the (U.S.-China) trade warand people are still looking at gold as a safe haven," he said.
Data from the Labor Department showed on Wednesday U.S.consumer prices barely rose in May, pointing to moderateinflation that together with a slowing economy increasedpressure on the Federal Reserve to cut interest rates this year. urn:newsml:reuters.com:*:nL2N23I1A9
Fed policymakers are scheduled to meet on June 18-19 againstthe backdrop of rising trade tensions, slowing growth and asharp step-down in hiring in May which have led financialmarkets to price in at least two rate cuts by the end of 2019.
Lower interest rates decrease the opportunity cost ofholding non-yielding bullion and weigh on the dollar, makinggold cheaper for investors holding other currencies.
The dollar index .DXY versus a basket of six majorcurrencies was down 0.1% on Thursday, having risen more than0.3% overnight. USD/
On the trade front, U.S. President Donald Trump said he hada "feeling" a U.S.-China trade deal could be reached, butreiterated his threat of increasing tariffs on Chinese goods ifthere is no agreement.
However, Trump declined to set a deadline for levyingtariffs on another $325 billion of Chinese goods and called therelationship with Beijing good but "testy" after China walkedback commitments for a trade deal. urn:newsml:reuters.com:*:nL2N23J0XO
Meanwhile, holdings of SPDR Gold TrustGLD , the world'slargest gold-backed exchange-traded fund, rose 0.5% to 759.70tonnes on Wednesday from 756.18 tonnes on Tuesday. GOL/ETF
On the technical side, spot gold is expected to retest aresistance at $1,339 per ounce, a break above which could leadto a gain to $1,346, according to Reuters technical analyst WangTao. urn:newsml:reuters.com:*:nL4N23K10Y
Among other precious metals, silver XAG= rose 0.6% to$14.82 per ounce and platinum XPT= gained 0.6% to $813.30.
Palladium XPD= was up 0.4% at $1,411.90 an ounce afterhitting a more than one-month high of $1,415.96 earlier in thesession. (Reporting by Brijesh Patel in Bengaluru; Editing by SubhranshuSahu) ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 8485832, Outside U.S. +91 8067493865; Reuters Messaging:Brijesh.Patel1.email@example.com))