FUNDAMENTALS
* Spot gold was down 0.1% at $2,003.33 per ounce, as of 0102 GMT, after rising 1% on Thursday. U.S. gold futures fell 0.2% to $2,014.80.
* The dollar index was steady, making gold less affordable for buyers holding other currencies.
* Data on Thursday showed the number of Americans filing new claims for unemployment benefits increased moderately last week, suggesting the labour market was gradually slowing.
* Separately, a report from the Philadelphia Fed showed factory activity in the mid-Atlantic region plunged to the lowest level in nearly three years in April.
* Cleveland Fed President Loretta Mester said on Thursday the U.S. central bank still has more interest rate increases ahead of it, but noted the aggressive move to boost the cost of borrowing over the last year to quash high inflation is nearing its end.
* Dallas Fed President Lorie Logan said she is assessing whether the Fed has made enough progress on fighting inflation.
* The CME FedWatch tool shows that markets are pricing in an 84.5% chance of a 25 basis-point hike in May.
* Gold is considered a hedge against inflation but higher interest rates dim the non-yielding asset's appeal.
* Spot silver fell 0.2% to $25.23 per ounce, while platinum was flat at $1,093.16 and palladium rose 0.2% to $1,589.90.
DATA/EVENTS (GMT) 0600 UK Retail Sales MM, YY March 0600 UK Retail Sales Ex-Fuel MM March 0715 France S&P Global Mfg, Serv, Comp Flash PMIs April 0730 Germany S&P Global Mfg, Serv, Comp Flash PMIs April 0800 EU S&P Global Mfg, Serv, Comp Flash PMIs April 0830 UK Flash Comp, Mfg, Serv PMIs April 1345 US S&P Global Mfg, Serv, Comp Flash PMIs April (Reporting by Kavya Guduru in Bengaluru; Editing by Subhranshu Sahu)
