PRECIOUS-Gold set for fourth weekly gain in five on Fed rate-cut optimism

March 22 (Reuters) - Gold prices edged higher on Friday and were set for a fourth weekly rise in five after the U.S. Federal Reserve maintained its interest rate cut projections for the year, boosting investor sentiment. FUNDAMENTALS * Spot gold XAU= was up 0.1% at $2,183.93 per ounce, as of 0117 GMT, after hitting an all-time high on Thursday. Bullion has risen 1.3% so far this week. * U.S. gold futures GCcv1 were also up 0.1% at $2,186 per ounce. * The U.S. central bank held rates steady on Wednesday, but policymakers indicated they still expected to reduce them by three-quarters of a percentage point by the end of 2024 despite recent high inflation readings. * Fed Chair Jerome Powell said recent high inflation readings had not changed the overall story of slowly easing U.S. price pressures. * Gold, which pays no interest, tends to benefit when interest rates fall as this reduces the opportunity cost of holding bullion. * Fed funds futures traders are now pricing in a 74% probability that the Fed will begin cutting rates in June, according to the CME Group's FedWatch Tool. * Meanwhile, the Bank of England kept borrowing costs unchanged on Thursday and said the economy was moving in the direction for interest rate cuts. * Data on Thursday showed that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, while sales of previously owned homes increased by the most in a year in February. * The dollar =USD rebounded after the Swiss National Bank's surprise interest rate cut bolstered global risk sentiment and underscored the appeal of the greenback amid strong U.S. economic growth. USD/ * Spot silver XAG= was flat at $24.77 per ounce, platinum XPT= slipped 0.3% to $904.95 and palladium XPD= eased 0.1% to $1,009.21. (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu) (([email protected]; Within U.S. +1 651 848 5832, Outside U.S. +91 9590227221; Reuters Messaging: [email protected]))