* Gold up 1.9% this week * SPDR Gold Trust holdings rose 0.6% on Thursday * Platinum set for second straight weekly decline (Adds comment, updates prices) By Sethuraman N R May 21 (Reuters) - Gold edged up on Friday en route to a third straight weekly gain, supported by a subdued U.S. dollar and Treasury yields as concern receded over tapering by the U.S. Federal Reserve. Spot gold ticked 0.1% higher to $1,877.70 per ounce by 1158 GMT and was up 1.9% on the week. U.S. gold futures fell 0.2% to $1,878.90. "Overall, investors are not too worried about (monetary) tightening at the moment. And we"ve seen the U.S. bond yields come down a little bit and that has allowed gold to remain near recent highs," said ThinkMarkets analyst Fawad Razaqzada. On the technical front, "The path of least resistance is to the upside and $1,900 is the next logical target." Gold has steadied after minutes from the Fed"s April meeting mentioned possible future discussions on paring stimulus, prompting speculation over potential increases to interest rates. The dollar hovered around recent lows versus rivals while benchmark 10-year Treasury yields slipped. Recent data showing a rise in commodities prices globally have intensified concerns over inflation, lifting gold"s appeal as an inflation hedge, analysts said. Indicative of sentiment, holdings of SPDR Gold Trust , the world"s largest gold-backed exchange-traded fund, rose 0.6% to 1,037.09 tonnes on Thursday. "Capital flows to where investors can get higher returns and at this moment gold is benefiting from the cryptocurrency crash too," said Brian Lan, managing director at dealer GoldSilver Central. Elsewhere, palladium fell 0.1% to $2,849.24 an ounce, silver was flat at $27.74. Platinum eased 0.1% to $1,195.07, on track for its second straight weekly decline. "For the full year, we expect platinum to be undersupplied by about 2.3% relative to demand," UBS analyst Giovanni Staunovo said in a note. "We reiterate our positive price outlook as we move into 2022 and recommend that risk-seeking investors sell platinum"s downside price risks or add exposure upon price setbacks." (Reporting by Nallur Sethuraman, additional reporting by Arpan Varghese in Bengaluru Editing by David Goodman and Louise Heavens) Our Standards: The Thomson Reuters Trust Principles.
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