Gold prices edged higher on Thursday as the dollar eased, although U.S. Federal Reserve Chair Jerome Powell's hawkish remarks limited further gains in zero-yielding bullion.

 

FUNDAMENTALS

* Spot gold was up 0.1% at $1,815.58 per ounce, as of 0046 GMT, after hitting a one-week low on Wednesday. U.S. gold futures were unchanged at $1,819.10.

* The dollar index was down from three-month highs scaled on Wednesday, making bullion more affordable for buyers holding other currencies.

* Fed Chair Powell on Wednesday reaffirmed his message of higher and potentially faster interest rate hikes, but emphasized that debate was still underway with a decision hinging on data to be issued before the U.S. central bank's policy meeting in two weeks.

* Although gold is considered a hedge against inflation, interest rate hikes to control rising prices dims non-yielding bullion's appeal.

* Investors' focus will now be on the U.S. jobs report for February due on Friday.

* Private employment increased by 242,000 jobs last month, the ADP National Employment report showed on Wednesday.

* Other data on Wednesday showed U.S. job openings fell less than expected in January, pointing to persistently tight labor market conditions.

* Markets are pricing in a 50-basis-point hike at the Fed's March 21-22 policy meeting.

* Spot silver was flat at $20.01 per ounce, platinum edged 0.1% higher at $938.23 and palladium firmed 0.2% to $1,375.47.

 

(Reporting by Kavya Guduru in Bengaluru; Editing by Sherry Jacob-Phillips)