PRECIOUS-Gold heads for eighth weekly gain on strong safe-haven demand

* Gold headed for weekly gain of 2.2% * Silver slips from record high of $51.22 hit on Thursday * Israel ratifies ceasefire agreement with Hamas on Friday (Updates for Asia session trade) By Ishaan Arora Oct 10 (Reuters) – Gold held steady below $4,000 an ounce on Friday and was set for an eighth straight weekly gain, buoyed by lingering geopolitical and economic tensions and increased expectations of further U.S. rate cuts. Spot gold slipped 0.2% to $3,968.69 per ounce by 0340 GMT, but was up 2.2% for the week. U.S. gold futures for December delivery rose 0.3% to $3,982.6. Silver rose 0.3% to $49.25 per ounce, easing from the record high of $51.22 hit on Thursday. "Options markets revealed a rise in volatility alongside downside protection for gold during the final stages of this rally, and it seems a good a time as any for gold bulls to book some profits. Still, I expect any pullback could be limited," City Index senior analyst Matt Simpson said. Israel's government ratified a ceasefire with Hamas on Friday, clearing the way to suspend hostilities in Gaza within 24 hours and free Israeli hostages held there within 72 hours after that, even as Israeli strikes on the besieged enclave continued. ANZ analysts said in a note that slowing economic growth, higher inflation, a shifting geopolitical landscape and diversification from U.S. assets and the dollar will keep investment demand and central bank purchases of gold strong, while renewed rate cuts should also support the metal. Bullion surged past $4,000 per ounce for the first time on Wednesday, reaching a record high of $4,059.05. The non-yielding asset, traditionally considered a hedge during geopolitical and economic uncertainty, has gained about 52% this year. Its rally has been fuelled by geopolitical tension, robust central bank buying, rising exchange-trade fund inflows, expectations of U.S. rate cuts and tariff-related economic uncertainties. Minutes of the U.S. Federal Reserve's September meeting, released on Wednesday, showed that Fed officials agreed that risks to the U.S. job market were high enough to warrant a rate cut, but remained wary amid stubborn inflation. The Fed resumed its rate-cutting cycle in September with a 25 basis-point cut. Traders see a 25-bp cut each in October and December, with a 95% and 80% chance, respectively. Platinum eased 1% to $1,601.78 and palladium dropped 2.3% to $1,379.25. (Reporting by Ishaan Arora in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)

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