* Bullion down over 1% for the week
* Platinum on track for weekly gain
* U.S. NFP data due at 1230 GMT
May 3 (Reuters) -
Gold prices were set to drop for a second straight week on Friday, as investors grasped the idea for rates to remain higher in the U.S. until at least year-end, while prices remained steady for the day ahead of a key U.S. jobs data.
Spot gold fell 0.2% to $2,299.53 per ounce as of 1032 GMT, and has lost more than 1% this week. Prices have fallen more than $130 after hitting a record high of $2,431.29 in April.
U.S. gold futures fell 0.1% to $2,308.20.
"What I see now is kind of a psychological retracement of gold. Moreover, the market is still digesting what Powell said a few days ago...but investors are still seeing correction as a chance for increasing their position for buying gold," Carlo Alberto De Casa, a market analyst at Kinesis Money, said.
The Fed on Wednesday indicated it is still leaning towards eventual reductions in borrowing costs, but put a red flag on recent disappointing inflation readings that could make those rate cuts a while in coming. Markets are pricing in a 73% chance of a rate cut in November, as per CME's FedWatch Tool.
Bullion is considered an inflation hedge, but elevated interest rates reduce the appeal of the non-yielding asset.
The U.S. non-farm payrolls report is due at 1230 GMT.
"I'm not expecting too sharp movement and expect gold to remain between $2,280 and $2,330," De Casa said.
According to Reuters technical analyst Wang Tao, spot gold is biased to break resistance at $2,311 and climb to a range of $2,325-$2,351.
Spot silver fell 0.6% to $26.53, heading for a weekly decline.
As silver dips back towards the $25-$26 breakout area, a bullish reversal sign is likely to follow, Fawad Razaqzada, market analyst at City Index, said in a note.
Platinum gained 1.6% to $964.39, rising more than 5% so far in the week. Palladium fell 0.1% to $934.80.
(Reporting by Harshit Verma and Ashitha Shivaprasad in Bengaluru; Editing by Vijay Kishore)
