(Reuters) - Gold prices inched lower on Thursday as the U.S. dollar firmed, while easing concerns about the global banking system slowed safe-haven flows into bullion.
Fundamentals
* Spot gold was down 0.2% at $1,960.68 per ounce, as of 0103 GMT. U.S. gold futures fell 0.3% to $1,962.10.
* The dollar index was 0.1% higher, making bullion less affordable for buyers holding other currencies.
* Market participants are awaiting U.S. Personal Consumption Expenditures data, the Federal Reserve's preferred inflation measure, for further clues about the Fed's monetary policy. The data is due on Friday.
* The Fed will make its interest rate decisions from here on a meeting-to-meeting basis and will take financial conditions into account in that judgment alongside other factors, Fed Vice Chair for Supervision Michael Barr said on Wednesday.
* Barr also said the scope of blame for Silicon Valley Bank's failure stretches across bank executives, Fed supervisors and other regulators.
* Markets see a 41.2% chance of the Fed raising interest rates by 25 basis points in May, according to the CME FedWatch tool.
* The opportunity cost of holding non-yielding gold rises when interest rates are increased to bring down inflation.
* Falling energy prices will lower headline inflation towards the Bank of England's (BoE) 2% target, but persistent underlying inflation will make it hard for the BoE to set monetary policy as the year progresses, BoE monetary policy committee member Catherine Mann said on Wednesday.
* Spot silver fell 0.3% to $23.29 per ounce, platinum slipped 0.5% to $962.88 and palladium edged down 0.2% to $1,436.85.