Jan 21 (Reuters) - Gold prices were muted on Friday and were on course for a second consecutive weekly gain, as investors turned to safe-haven assets while awaiting signals on interest rate hikes from the U.S. Federal Reserve's meeting next week.
FUNDAMENTALS
* Spot gold was unchanged at $1,838.21 per ounce as of 0035 GMT. U.S. gold futures were down 0.2% at $1,838.70.
* Benchmark U.S. 10-year Treasury yields dropped on Thursday, reducing the opportunity cost of holding non-interest bearing bullion, and buoying gold.
* Gold has gained about 1.2% so far this week and is en route to its second weekly gain in three this month — a positive start for bullion in a year that is expected to be difficult.
* All eyes are on the U.S. central bank's Federal Open Market Committee scheduled meet on Jan. 25-26 for any updates on the Fed's existing plans for rate hikes against the backdrop of surging inflation.
* Although gold is usually perceived as an inflationary hedge, it is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-interest bearing bullion.
* The number of Americans filing new claims for unemployment benefits jumped to a three-month high last week.
* Japan's core consumer prices rose 0.5% in December from a year earlier.
* Spot silver was down 0.4% at $24.34 an ounce, but is still set for its best week in a year — up about 6% so far. Palladium fell 0.6% to $2,047.05, and is poised for a weekly gain of about 9%.
* Spot platinum dropped 0.4% to $1,034.98, but remains on course for its best weekly showing in seven months, having gained about 6.6% so far. (Reporting by Bharat Govind Gautam in Bengaluru; editing by Uttaresh.V)
