May 6 (Reuters) - Gold prices inched lower on Thursday due to a stronger dollar, while investors awaited the release of U.S. non-farm payrolls data for April due later this week. FUNDAMENTALS * Spot gold was down 0.1% at $1,785.05 per ounce by 0126 GMT. * U.S. gold futures was steady at $1,785.10 per ounce. * The dollar index hovered close to a two-week high, making gold more expensive for other currency holders. * U.S. private payrolls surged by the most in seven months in April as companies rushed to boost production amid a surge in demand, suggesting the economy gained further momentum early in the second quarter, powered by massive government aid and rising COVID-19 vaccinations. * Investors look forward to Friday's U.S. monthly jobs report, which is expected to show nonfarm payrolls increased by 978,000 jobs last month. * The U.S. economy may be growing more quickly and unemployment falling faster than the core of Federal Reserve policymakers projected in March, Fed Governor Michelle Bowman said on Wednesday. * Meanwhile, Chicago Federal Reserve Bank President Charles Evans on Wednesday reiterated his worries about reaching the Fed's 2% inflation goal and said he expects monetary policy to stay super-easy for some time. * Lower interest rates decrease the opportunity cost of holding non-yielding bullion. * The Bank of England will say on Thursday Britain's economy is heading for a much stronger recovery this year than it previously expected and it might start to slow its pandemic emergency support. * Palladium fell 0.1% to $2,968.78 per ounce, after scaling an all-time high of $3,017.18 per ounce on Tuesday, driven by supply shortfalls. * Silver was down 0.5% at $26.37 per ounce, while platinum dipped 0.4% to $1,220.16. DATA/EVENTS (GMT) 1100 UK BOE Bank Rate May 1100 UK GB BOE QE Corp May 1230 US Initial Jobless Clm Weekly (Reporting by Shreyansi Singh in Bengaluru; Editing by Krishna Chandra Eluri)
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