FUNDAMENTALS
* Spot gold was down 0.1% at $1,978.39 per ounce, as of 0043 GMT, after rising 1% on Thursday. U.S. gold futures fell 0.1% to $1,996.50.
* The dollar index was 0.1% higher, making bullion less affordable for buyers holding other currencies.
* Gold is set to end the quarter and the month higher on expectations that the Fed might consider a rate-hike pause after the collapse of two U.S. regional banks.
* The Fed’s preferred inflation measure, the Personal Consumption Expenditures data, due at 1230 GMT is awaited for further clues on the U.S. central bank’s next move.
* The opportunity cost of holding non-yielding gold rises when interest rates are increased to bring down inflation. * Three Fed officials kept the door open on Thursday to more rate hikes aimed at lowering high levels of inflation, with two noting banking sector problems could generate enough headwinds on the economy to help cool price pressures faster than expected.
* Markets see a 52.2% chance of the Fed standing pat on interest rates in May, according to the CME FedWatch tool.
* Data on Thursday showed the number of Americans filing new claims for unemployment benefits rose moderately last week.
* Spot silver eased 0.1% to $23.86 per ounce, platinum was up 0.1% at $986.27 and palladium fell 0.5% to $1,457.39.
