Gold prices were flat in early Asian hours on Thursday as the dollar firmed after strong U.S. retail sales data, offseting support from hopes that the Federal Reserve had come to the end of its tightening cycle.

FUNDAMENTALS

* Spot gold was little changed at $1,958.79 per ounce, as of 0128 GMT. U.S. gold futures edged 0.1% lower to $1,961.70.

* The dollar held its ground after bouncing back overnight as robust U.S. economic data clouded the outlook for when the Fed will begin cutting interest rates.

* A stronger dollar makes gold more expensive for overseas buyers.

* U.S. producer prices fell by the most in three-and-a-half years in October amid a sharp drop in the cost of gasoline, the latest indication of subsiding inflation pressures.

* U.S. retail sales fell for the first time in seven months in October, pointing to slowing demand at the start of the fourth quarter that further strengthened expectations the Fed is done hiking interest rates.

* On Tuesday, data showed U.S. headline consumer prices were flat in October, against expectations for a 0.1% rise. Core CPI, at 0.2%, also came in below a forecast of 0.3%.

* However, San Francisco Fed President Mary Daly warned against calling time on rate-rising cycle too soon, in an interview to Financial Times on Wednesday.

* Traders widely expect the Fed to leave rates unchanged in December and bet it will start cutting rates by May, according to the CME FedWatch tool.

* Lower interest rates decrease the opportunity cost of holding gold.

* Spot silver fell 0.2% to $23.39 per ounce, while platinum dipped 0.3% to $893.37. Palladium was flat at $1,031.40 per ounce.

DATA/EVENTS (GMT) 0430 Japan Tertiary Ind Act NSA Sept 1330 US Import Prices YY Oct 1303 US Initial Jobless Clm Weekly 1330 US Philly Fed Business Indx Nov 1415 US Industrial Production Oct (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)