Gold set for first weekly gain in three on weakening dollar

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Gold on Friday held near a more than

one-month peak scaled in the previous session, with bullion set

for a weekly gain of over 1%, as a weakness in the dollar and

Treasury yields offered support along with a surprise jump in

U.S. jobless claims.

FUNDAMENTALS

* Spot gold was steady at $1,755.91 per ounce by 0151

GMT, having hit a high since March 1 at $1,758.45 an ounce on

Thursday.

* The metal has gained nearly 1.5% for the week so far,

after posting losses in the previous two weeks.

* However, U.S. gold futures fell 0.1% on Friday to

$1,756.20 per ounce.

* The U.S. dollar fell to a two-week low against a basket of

currencies after the number of Americans filing new unemployment

claims increased for the second straight week, last week.

* U.S. Treasury yields fell on Thursday, pressured by fresh

dovish comments from Federal Reserve Chair Jerome Powell.

* Powell noted that an expected rise in prices this year is

likely to be temporary, and warned that an uptick in COVID-19

cases could slow the recovery.

* The U.S. central bank intends to maintain its ultra-easy

stance even though data suggest the economy revving up.

* The European Central Bank policymakers discussed a smaller

rise in bond purchases, according to meeting accounts.

* U.S. Treasury Secretary Janet Yellen on Thursday

encouraged major economies to add substantial new fiscal

stimulus to ensure a robust recovery.

* Silver stood unchanged at $25.45 and was set for

biggest weekly gain in four.

* Palladium was down 0.2% to $2,618.51. Platinum

fell 0.3% to $1,225.95 but was set for its second

straight weekly gain.

DATA/EVENTS (GMT)

0130 China PPI, CPI YY March

0600 Germany Industrial Output MM Feb

0730 UK Halifax House Prices MM March

(Reporting by Diptendu Lahiri in Bengaluru; editing by

Uttaresh.V)