Gold prices were little changed on Friday after two sessions of sharp gains, as a slightly stronger dollar countered hopes of a potential pause in the Federal Reserve's rate-hike cycle.

 

FUNDAMENTALS

* Spot gold was flat at $1,993.73 per ounce, as of 0104 GMT. U.S. gold futures were also unchanged at $1,996.60.

* The dollar index edged up 0.1%, making bullion more expensive for buyers holding other currencies.

* Bullion has gained nearly 0.3% so far in the week, after the Fed hinted it might pause further increases in borrowing costs after the recent collapse of two U.S. banks.

* Gold is traditionally considered a hedge against inflation, and a low interest-rate environment makes non-yielding bullion a more attractive bet.

* The number of Americans filing new claims for unemployment benefits edged down last week.

* The Bank of England raised interest rates for the 11th time in a row on Thursday, but said a surprise resurgence in inflation would probably fade fast, prompting speculation it had ended its run of hikes.

* U.S. Treasury Secretary Janet Yellen sought to reassure jittery investors that American bank deposits were safe and promised policymakers had more firepower to battle any crisis.

* Spot silver eased 0.1% to $23.11 per ounce, platinum was little changed at $984.13 and palladium was 0.1% lower at $1,429.19.

 

(Reporting by Kavya Guduru in Bengaluru; Editing by Subhranshu Sahu)