* Bullion lost over 1% on Friday
* U.S. business activity crept up to a 26-month high in June
* U.S. PCE data due on Friday
June 24 (Reuters) - Gold prices edged up on Monday as Treasury yields fell, while investors awaited key U.S. inflation data and Federal Reserve officials' comments through the week for fresh clues on the potential timing of the central bank's interest rate cut.
Spot gold was up 0.2% at $2,325.53 per ounce as of 0333 GMT, after falling more than 1% on Friday. U.S. gold futures rose 0.3% to $2,338.10.
Benchmark 10-year U.S. Treasury yields edged down, making non-yielding bullion more attractive for investors.
"Friday night saw a pretty significant sell-off due to the strong U.S. dollar. Gold has been hit by that to some extent, even though the markets are sort of edging towards two rate-cuts this year," said Kyle Rodda, a financial market analyst at Capital.com.
U.S. business activity crept up to a 26-month high in June amid a rebound in employment, which pushed the dollar to its highest level in near eight weeks. A stronger dollar makes bullion expensive for other currency holders.
Traders are looking out for the U.S. core personal consumption expenditures (PCE) price index report — the Fed's preferred measure of inflation — due on Friday to get more cues on the timing and scale of rate cuts.
"If we continue to see PCE come in on the lower side, it might confirm that the Fed's in a position to potentially lower rates two times this year. And if we get that, then that's going to be a fairly positive thing for gold," Rodda added.
Lower rates reduce the opportunity cost of holding non-yielding bullion.
There are at least five Fed officials speaking this week, including San Francisco Fed President Mary Daly and Fed Governors Lisa Cook and Michelle Bowman.
Spot silver rose 0.2% to $29.59 per ounce, platinum was unchanged at $992.45 and palladium gained 0.5% to $953.46.
(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Rashmi Aich)
