* Spot gold was up 0.2% at $2,043.16 per ounce, as of 0044 GMT, hovering near a one-year high reached on Thursday. U.S. gold futures were unchanged at $2,054.60.
* The dollar index was 0.1% lower, making bullion cheaper for buyers holding other currencies.
* Data on Thursday showed U.S. producer prices unexpectedly fell by 0.5% in March, and there were signs that underlying producer inflation was subsiding.
* Moreover, the number of Americans filing new claims for unemployment benefits increased more than expected last week, a further sign that labour market conditions were loosening up as higher borrowing costs dampen demand in the economy.
* Data released on Wednesday showed that the U.S. Consumer
Price Index rose 0.1% last month after advancing 0.4% in
February.
* These economic readings, along with fears of a mild
recession, have helped bullion gain about 1.7% so far in the
week.
* The CME FedWatch tool shows markets are pricing in a 68.7%
chance of a 25 basis-point hike in May, with rate cuts seen in
the back half of the year.
* Gold is traditionally considered a hedge against inflation
and economic uncertainties, but higher interest rates dim
non-yielding bullion's appeal.
* Spot silver rose 0.2% to $25.85 per ounce, platinum added 0.5% at $1,052.59 and palladium gained 0.8%
to $1,511.49.
DATA/EVENTS (GMT) 0645 France CPI (EU Norm) Final MM, YY March 1230 US Import Prices YY March 1230 US Retail Sales MM March 1315 US Industrial Production MM March 1400 US U Mich Sentiment Prelim April (Reporting by Kavya Guduru in Bengaluru; Editing by Subhranshu Sahu)
