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 Gold prices fell on Thursday as the dollar firmed ahead of a much awaited U.S. non-farm payrolls report, as investors sought clarity on whether the Federal Reserve might take a breather on its monetary tightening path.

FUNDAMENTALS

* Spot gold was down 0.3% at $2,014.79 per ounce, as of 0101 GMT, after hitting an over one-year high on Wednesday. U.S. gold futures were steady at $2,034.70.

* The dollar index was 0.1% higher, making bullion expensive for overseas buyers. [USD/]

* The U.S. services sector slowed more than expected in March as demand cooled, while a measure of prices paid by services businesses fell to the lowest in nearly three years.

* The ADP National Employment report on Wednesday showed that U.S. private employers hired far fewer workers than expected in March, suggesting the labour market was cooling.

* Investors now await Friday's non-farm payrolls report for March, with economists polled by Reuters expecting new jobs of about 240,000.

* Markets see a 54.2% chance of the Fed standing pat on interest rates in May, according to the CME FedWatch tool.

* Cleveland Federal Reserve Bank President Loretta Mester, however, said on Wednesday it was too early to know if the Fed would need to raise interest rates at its May policy meeting, even as she predicted rates will need to move higher.

* While gold is traditionally considered a hedge against inflation, higher interest rates dim non-yielding bullion's appeal.

* Spot silver shed 1% to $24.73 per ounce, platinum rose 0.3% to $999.68 and palladium eased 0.1% to $1,428.25.

DATA/EVENTS (GMT)

0145 China Caixin Services PMI Mar

0430 India Cash Reserve Ratio

0600 Germany Industrial Output Feb

0600 UK Halifax House Prices Mar

0830 UK All Sector PMI Mar

0830 UK S&P Global/CIPS Cons PMI Mar

1230 US Initial Jobless Claims Weekly