* Gold down 0.5% for the week and 2.7% for the month
* Silver on track to post best week in six, up 3.9%
* Platinum set for worst week in seven
* Palladium on track for biggest monthly decline since April
* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa (Adds graphic, updates prices)
By Sumita Layek
Jan 29 (Reuters) - Gold prices traded in a tight range on Friday, but prices were on track to post a weekly and monthly decline as a stronger dollar took some shine off the precious metal.
Spot gold XAU= was up 0.2% at $1,844.86 per ounce by 0732 GMT. Prices were down 0.5% for the week and 2.7% for the month. U.S. gold futures GCv1 rose 0.4% to $1,847.90.
"Gold is largely going to continue to tread water as it is waiting for a proper catalyst," said Michael McCarthy, chief market strategist at CMC Markets.
The passage of a U.S. stimulus, potential for increase in inflation and next set of actions from global central banks will be key for gold, he said.
Gold is considered a hedge against inflation likely from widespread stimulus.
The dollar .DXY has risen 0.9% this month helped by higher U.S. Treasury yields and on expectations that President Joe Biden's fiscal spending package will not be as large as the proposed $1.9 trillion. USD/
"Dollar has become the current safe-haven favourite," Phillip Futures said in a note.
Silver XAG= rose 0.1% to $26.39 an ounce, having gained 4.5% on Thursday after some traders moved to cover short positions on rumours about a GameStop-style squeeze driven by retail investors. metal is up 3.9% for the week, its best weekly performance in nearly one-and-a-half months.
The gold/silver ratio, which measures the number of silver ounces needed to buy an ounce of gold, fell to its lowest since August in the previous session.
However, the steadier nature of commodity markets at the moment might be less attractive to retail day traders, CMC Markets' McCarthy added.
Platinum XPT= rose 0.6% to $1,077, but was set to register its worst week in seven. Palladium XPD= rose 0.3% to $2,340.70, but was down 4.4% for the month, its biggest monthly decline since April.
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