July 17 (Reuters) - Gold rebounded on Friday but was set for its biggest weekly loss in six, as renewed U.S.-Iran clashes lifted oil prices, stoked inflation concerns and strengthened expectations that interest rates could stay higher for longer.

FUNDAMENTALS

* Spot gold XAU= gained 0.5% to $3,988.57 per ounce by 0103 GMT, having touched its lowest since July 1 earlier in the session. U.S. gold futures GCcv1 for August delivery were steady at $3,992.70.

* Iran and the United States exchanged intensifying fire on Thursday in a week-long escalation that has largely unravelled last month's truce.

* Oil prices have jumped about 12% so far this week as the escalating U.S.-Iran conflict stoked supply concerns. O/R

* Non-yielding gold typically struggles when interest rates are high because investors favour investments that offer better returns. The metal is down over 3% for the week so far.

* Dallas Federal Reserve President Lorie Logan became the first of Fed Chairman Kevin Warsh's new colleagues to call publicly for a rate hike.

* Fed Vice Chair Philip Jefferson also suggested he would be open to raising rates if there is no near-term improvement in inflation.

* Inflation is proving persistent across a broad range of goods and services, and remains the focus of monetary policy given a stable labour market, Kansas City Fed President Jeff Schmid said.

* The number of Americans filing claims for unemployment benefits fell last week.

* U.S. retail sales increased marginally in June as lower gasoline prices weighed on receipts at service stations.

* China can stabilise economic growth this year by accelerating already-budgeted national infrastructure investment projects, economists and one government adviser said, reducing the likelihood of large-scale fiscal stimulus.

* Britain on Thursday targeted what it said were illicit gold and finance networks fuelling Sudan's war, imposing sanctions on 11 individuals and entities.

* Elsewhere, spot silver XAG= gained 0.2% to $55.60 per ounce, platinum XPT= eased 0.1% to $1,616.10 and palladium XPD= rose 0.4% to $1,254.62. All three metals were headed for a weekly loss.

DATA/EVENTS (GMT)
0701	China Total Social Financing Jun
0701	China M2 Money Supply YY Jun
0702	China New Yuan Loans Jun
1230	US Housing Starts Number Jun
1230	US Import Prices YY Jun
1315	US Industrial Production MM Jun
1400	US U Mich Sentiment Prelim Jul