May 14 (Reuters) - Gold edged lower on Friday, as a firmer dollar made bullion more expensive for other currency holders, although a pullback in the U.S. Treasury yields limited losses for the safe-haven metal.
FUNDAMENTALS
* Spot gold XAU= was down 0.2% at $1,823.77 per ounce by 0127 GMT. Bullion lost 0.4% so far this week.
* U.S. gold futures GCv1 were steady at $1,823.20.
* The dollar index .DXY held firm near a one-week high, and was set for a weekly gain against its rivals. USD/
* Benchmark U.S. 10-year Treasury yields US10YT=RR slipped from a more than one-month high hit on Thursday. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold. US/
* Data on Thursday showed that fewer Americans filed new claims for unemployment benefits last week, while producer prices increased more than expected in April. Recent economic readings out of the United States have sparked concerns over rising inflation and raised bets over an earlier-than-expected Federal Reserve rate hike.
* The U.S. central bank has pledged to keep interest rates low until the economy reaches full employment, and inflation hits 2% and is on track to "moderately" exceed that level for some time.
* Gold tends to benefit from lower interest rate environment as it reduces the opportunity cost of holding non-yielding bullion.
* Fed Governor Christopher Waller said he expects inflation to exceed the Fed's 2% target for the next two years, but added that the Fed would not raise rates until it sees inflation above target for a long time, or excessively high inflation. Palladium XPD= gained 0.7% to $2,883.71 per ounce, but was on track to post a second straight weekly loss with a drop of about 2%.
* Silver XAG= was flat at $27.06 per ounce, while platinum XPT= was up 0.6% at $1,212.88.
DATA/EVENTS (GMT) 1230 US
Retail Sales MM
April 1315 US
Industrial Production MM April 1400 US
U Mich Sentiment Prelim
May