Dec 1 (Reuters) - Gold prices looked set to mark a third straight weekly rise on Friday, after data showing cooling inflation cemented bets for a rate cut in the U.S., with traders now looking forward to comments from Federal Reserve's Chair Powell later in the day.
* Spot gold XAU= rose 0.2% at $2,039.63 per ounce by 0301 GMT, after marking an over $60 rise in November - its second straight monthly rise.
* U.S. gold futures GCcv1 for February delivery rose 0.1% to $2,059.30.
* Data on Thursday showed U.S. consumer spending rose moderately in October, while the annual increase in inflation was the smallest in more than 2-1/2 years.
* The dollar index .DXY fell by 0.2%, after clocking its weakest monthly performance in a year in November, despite a 0.6% jump overnight. USD/
* A weaker dollar makes gold less expensive for other currency holders.
* Yields on 10-year Treasury notes US10YT=RR also ticked lower. US/
* Meanwhile, more Americans applied for unemployment benefits last week and the number on jobless rolls surged to a two-year high in mid-November, pointing to a gradually easing labour market.
* Cooling inflationary pressures, and an easing labour market make case for an end to the Federal Reserve's interest rate hiking campaign and a possibility of rate cuts in the months ahead, a rhetoric that two Fed officials also flagged this week.
* Traders have advanced their bets for a rate cut by the U.S. central bank from about an 80% chance in May to a one-in-two chance in March, CME's FedWatch Tool shows.
* Lower interest rates reduce the opportunity cost of holding non-interest-bearing bullion.
* Negotiators worked feverishly to renew the pause in fighting between Israel and Hamas in Gaza as a senior Israeli official reiterated plans to resume the war unless the Palestinian militant group agreed to release more hostages.
* Spot silver XAG= was steady at $25.24 per ounce. Platinum XPT= was down 0.3% to $924.17. Palladium XPD= rose 0.6% to $1,013.84 per ounce.
DATA/EVENTS (GMT) 0500 India S&P Global Mfg PMI Nov
0600 Russia S&P Global Mfg PMI Nov
0700 UK Nationwide house price Nov
0850 France S&P Global Mfg PMI Nov
0855 Germany HCOB Mfg PMI Nov
0900 Euro Zone HCOB Mfg Final PMI Nov
0930 UK S&P GLBL/CLIPS Mfg PMI Nov
1300 Brazil S&P Global Mfg PMI Nov
1445 US S&P Global Mfg PMI Final Nov
1500 US ISM Global Mfg PMI Nov
1500 US Fed's Austan Goolsbee speaks --
1600 US Fed's Jerome Powell speaks --
1900 US Fed's Powell and Fed Gov. Cook talk --
(Reporting by Harshit Verma in Bengaluru; Editing by Nivedita Bhattacharjee)
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