* Bullion up 1.3% so far this week

* US producer prices unexpectedly fell in May

* Silver, platinum, palladium headed for weekly losses

LONDON, June 14 (Reuters) - Gold prices rose on Friday and on track for their first weekly gain in four after U.S. economic data indicated a softening of price pressures, fuelling optimism that a rate cut by the Federal Reserve could be forthcoming.

Spot gold was up 0.8% to $2,320.90 per ounce by 0959 GMT. Bullion has gained 1.3% so far for the week.

Safe-haven demand driven by geopolitical and economic uncertainty, as well as persistent central bank buying contributed to a rally in gold from March to May, taking spot prices to a record $2,449.89 per ounce on May 20.

Now, gold appears to be stuck near a level of $2,300 as the metals sector in general undergoes consolidation with no significant downside levels broken or challenged, said Ole Hansen, head of commodity strategy at Saxo Bank.

"We conclude the underlying demand is strong enough to prevent the current consolidation turning into a major correction," Hansen said.

Supporting prospects for non-yielding bullion, traders are now seeing a 67% probability of a U.S. rate cut in September, according to the CME FedWatch Tool, after U.S. data this week showed that consumer prices were unchanged in May for the first time in nearly two years and producer prices unexpectedly fell in May.

Signals on the technical front have, however, deteriorated for gold this week with the 50-day moving average becoming a resistance level and a head and shoulders pattern - a bearish pattern of three peaks on the chart where the middle peak is the highest - becoming apparent, Kinesis Money said in a note.

Spot silver rose 0.2% to $29.05 per ounce after hitting the lowest in nearly one month in the previous session.

Platinum was up 0.1% at $947.80 and palladium gained 1.4% to $895.25.

(Reporting by Polina Devitt in London; additional reporting by Sherin Elizabeth Varghese in Bengaluru; editing by Jason Neely)