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PRECIOUS-Gold blasts past $1,400 as Fed rate cut signal wounds dollar, yields

* Gold sees best week in more than 3 years

Spot gold up nearly 10% this year, nears a 6-year peak

* Silver on track for best week in 2019

* Dollar on course for a weekly loss (Adds comments, details, updates prices)

By Brijesh Patel

June 21 (Reuters) - Gold jumped more than 1.5% on Friday, breaking above $1,400 for the first time since September 2013, as hints of a rate cut from the U.S. Federal Reserve took a toll on the greenback and U.S. Treasury yields.

Tensions in the Middle East also boosted gold's rally, which has lifted the precious metal nearly $80 or 5% this week and almost 10% so far this year.

Spot gold was up 1.4% at $1,406.81 per ounce as of 0305 GMT, after earlier hitting its highest since Sept. 4, 2013, at $1,410.78.

Gold is set to post its biggest weekly gain since the week ended April 29, 2016, and was also on track for its fifth consecutive weekly rise.

U.S. gold futures rose 1% to $1,410.70 an ounce.

"The dovishness of the Fed and ECB, geopolitical tensions in the Middle East, and a technical breakout above $1,350 with volumes gave strong support for the metal," said Jigar Trivedi, a commodities analyst at Mumbai-based Anand Rathi Shares & Stock Brokers.

"Momentum is positive for the next half of the year. The way prices have risen, there could be a technical profit-booking, but the undertone is positive," he said.

The Fed earlier this week said it was ready to battle growing global and domestic economic risks, hinting at interest rate cuts beginning as early as next month.

With the Fed possibly easing its policy soon, and other central banks such as the European Central Bank (ECB) and the Bank of Japan likely to follow in their wake, government bonds were on a bullish footing.

"A global wave of monetary policy easing has the impact of pushing global bond yields lower and is a key positive driver for gold," said Heng Koon How, head of markets strategy at Singapore's United Overseas Bank

The dollar was set for a weekly loss against major currencies, and U.S. benchmark 10-year Treasury yields dropped below 2% for the first time in more than 2-1/2 years.

"We maintain our ... bullish call for gold and it looks like our mid-2020 target of $1,450 may be reached much sooner," How said.

Adding to the global anxiety were fresh worries about Middle East tensions after Iran shot down a U.S. military drone, raising fears of a military confrontation between Tehran and Washington.

Among other precious metals, silver gained 0.5% to $15.50 per ounce, its highest in nearly three months and on track to post its biggest weekly percentage gain this year.

Platinum climbed 1.5% to $814.26 per ounce. Palladium rose 1.2% to $1,495.47. (Reporting by Brijesh Patel and Nallur Sethuramanin Bengaluru; Editing by Subhranshu Sahu and Tom Hogue)