PRECIOUS-Gold in slow rise as U.S. inflation data looms

SYDNEY, May 13 (Reuters) - Gold rose on Friday as the dollar steadied, although expectations that inflationary pressures in the U.S. were easing put a cap on the gains.

FUNDAMENTALS

* Headline CPI out on Friday is expected to show a more subdued rise of 0.4 percent versus 0.5 percent in March, according to a Reuters poll

* Spot gold had inched just under $3 higher to $1,504.69 an ounce at 0049 GMT, building on overnight gains.

* U.S. gold futures were down $2 to $1,504.80 an ounce.

* Spot silver edged 21 cents higher to $34.31 an ounce.

* COMEX silver was largely flat at $34.79 an ounce.

* Expectations of rising rates in the euro zone even as the Federal Reserve remains committed to keeping borrowing costs near zero have pushed the euro up near $1.50. But the currency has pulled back lately after the European Central Bank dented hopes of a rate hike next month. [ID:nN1286667]

* Greece will get its financial woes under control with the help of other euro zone members and the single currency is not at risk, European Central Bank Executive Board member Gertrude Tumpel-Gugerell said.[ID:nLDE74B18U]

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MARKET NEWS

* Defensive shares led a rebound in U.S. stocks on Thursday as investors weighed mixed economic signals and recent volatility in commodities as they searched for direction. The Dow Jones industrial average was up 65.89 points, or 0.52 percent, at 12,695.92. The Standard & Poor's 500 Index was up 6.57 points, or 0.49 percent, at 1,348.65. The Nasdaq Composite Index was up 17.98 points, or 0.63 percent, at 2,863.04.

* Oil rose slightly in volatile trading on Thursday, rebounding from a 5 percent plunge in the previous session as a weaker dollar prompted investors to buy riskier assets. U.S. June crude closed 76 cents higher at $98.97 a barrel.

* The euro edged higher from a six-week low against the U.S. dollar on Thursday as investors shrugged off worries about Greece and refocused attention on higher interest rates in the euro zone.

DATA/EVENTS GMT

0600 Germany GDP flash yy Jan 2011

0800 Italy GDP prelim yy Jan 2011

0900 EZ GDP flash estimate yy Jan 2011

1230 U.S. Consumer price April

1355 U.S. Reuters U. Mich sentiment index May

PRICES Precious metals prices 0053 GMT Metal             Last    Change Pct chg  YTD pct chg    Volume Spot Gold        1504.15    1.80  +0.12      5.97 Spot Silver        34.80    0.20  +0.58     12.77 Spot Platinum    1765.74    3.59   +0.20     -0.10 Spot Palladium    713.47    2.57   +0.36    -10.76 TOCOM Gold       3924.00   14.00  +0.36      5.23        39841 TOCOM Platinum   4646.00  -7.00   -0.15     -1.06         6957 TOCOM Silver       90.30    0.50  +0.56     11.48         3364 TOCOM Palladium  1870.00    5.00   +0.27    -10.82          185 COMEX GOLD JUN1  1504.40   -2.40   -0.16      5.84         2908 COMEX SILVER JUL1  34.79  -0.01   -0.03     12.43         1728 Euro/Dollar       1.4215 Dollar/Yen         80.90

TOCOM prices in yen per gram. Spot prices in $ per ounce. COMEX gold and silver contracts show the most active months

(Reporting by James Regan;Editing by Clarence Fernandez)