June 12 (Reuters) - Gold prices edged lower on Friday and were on track for a weekly loss amid inflation concerns and potential U.S. Federal Reserve interest rate hikes.

FUNDAMENTALS

* Spot gold XAU= was down 0.3% at $4,200.82 per ounce, as of 0101 GMT, and was set for a weekly loss of 2.8%. U.S. gold futures GCcv1 for August delivery rose 2.6% to $4,222.10.

* Gold fell to an over six-month low on Thursday before closing higher at $4,219.69 as U.S. President Donald Trump called off planned military strikes on Iran and signalled an imminent peace deal.

* President Donald Trump on Thursday said the United States and Iran could sign a peace deal as soon as this weekend that would reopen the Strait of Hormuz to shipping, but Iran countered that it had not reached a final decision on an agreement.

* U.S. producer prices increased more than expected in May, leading to the largest annual gain in 3-1/2 years as the Middle East conflict drove up the cost of energy products.

* Traders are currently pricing a 60% chance of a U.S. rate hike in December, according to the CME Group's FedWatch tool. FEDWATCH

* While gold is seen as a hedge against inflation, higher interest rates tend to weigh on the non-yielding metal.

* DBS Group, Singapore's biggest bank by assets, said on Thursday it will offer tokenised physical gold to retail customers as demand for the precious metal grows and the city-state pushes to become a gold trading hub.

* Spot silver XAG= fell 0.4% to $67.11 per ounce, platinum XPT= gained 0.3% to $1,724.45, while palladium XPD= rose 1% to $1,281.75.

DATA/EVENTS (GMT)
0600	UK GDP Est 3M/3M, MM, YY Apr
0600	UK Services MM, YY Apr
0600	UK Manufacturing Output MM Apr
1400	US U Mich Sentiment Prelim Jun