PRECIOUS-Gold steadies as dollar retreats, on way to best week in three

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* Dollar on track for first weekly fall in four weeks

* Platinum heading for fifth weekly gain (Updates prices, adds details and comments)

By Sumita Layek

Spot gold XAU= rose 0.2 percent to $1,294.36 per ounce asof 10:20 a.m. EDT (1420 GMT). The metal broke below $1,300 andhit a one-week low on Thursday, but prices have gained 0.3percent so far this week.

U.S. gold futures GCv1 increased by 0.3 percent to$1,297.1 an ounce.

"We're recovering a little bit after yesterday's bigsell-off. The dollar strength really hurt precious metals andwe're seeing some of that reverse with most currencies running alittle higher versus the dollar this morning," said ChrisGaffney, president of world markets at TIAA Bank.

"We've got tame inflation, the trade situation is gettingresolved and Brexit looks like it's going to be pushed down theroad. So right now investors don't have any incentive to buygold."

The dollar .DXY fell to its lowest in two weeks againstkey rivals and was headed for its first weekly decline in fourweeks. USD/

However, the stronger U.S. stock market, boosted bybetter-than-expected results from JPMorgan Chase & CoJPM.N , a$33 billion energy deal and signs of stability in the Chineseeconomy, dented bullion's appeal.

A further dovish tone from the U.S. Federal Reserve andweaker global growth data could propel gold higher, Gaffneysaid, "but for now, it's going to struggle to get back abovethat $1,300 level.

Early in the week, bullion received support from increasedbuying by central banks and a dovish view from the EuropeanCentral Bank as well as minutes from the U.S. Fed. Howeverstrong U.S. economic data on Thursday boosted the dollar andtriggered a sell-off in gold.

Data showed weekly U.S. jobless claims fell to the lowest innearly half a century and producer prices increased the most infive months in March.

"Given the marked decline we expect in U.S. equities thisyear, we suspect that safe-haven assets will soon surge,"Capital Economics analysts said in a note.

"We think gold investment should be strong, particularly inthe form of exchange-traded fund buying. As a result, we expectthe price of gold to rally to $1,400 per ounce by end-2019."

Silver XAG= was up 1 percent at $15.10 an ounce.

Spot platinum XPT= rose 1.3 percent to $899.08 per ounce,heading for its fifth straight weekly gain.

Palladium XPD= was up 0.8 percent at $1,376.88 per ounce. (Reporting by Sumita Layek in Bengaluru; Editing by JeffreyBenkoe) ((; Within U.S. +1 651 848 5832,Outside U.S. +91 8067491638; Reuters

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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