Gold prices held steady on Friday, and were on track for their first weekly gain in four, despite falling over 1% in the previous session after the U.S. Federal Reserve projected just one interest rate cut this year.


* Spot gold was unchanged at $2,303.43 per ounce, as of 0134 GMT. Bullion gained 0.5% so far for the week. U.S. gold futures held steady at $2,318.50.

* Fed policymakers, on Wednesday, pushed out the start of rate cuts to perhaps as late as December, implying they will lower rates only once this year, dashing hopes of two cuts and despite some progress in controlling inflation.

* Lower interest rates reduce the opportunity cost of holding non-yielding bullion.

* U.S. producer prices unexpectedly fell in May amid lower energy costs, indicating that inflation subsided after surging in the first quarter.

* Gold Fields lowered its annual production forecast after bad weather impacted the ramp-up at its new Salares Norte mine in Chile.

* Spot silver fell 0.5% to $28.985 per ounce, platinum was up 0.7% at $953.43 and palladium gained 0.8% to $889.84.

DATA/EVENTS (GMT) 1230 US Import price index May 0200 US Consumer sentiment (prelim) June 0600 Sweden Consumer price index MM May 0830 HK Industrial production YY Q1

(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Savio D'Souza)