Updates with EMEA mid session trading

By Anjana Anil and Sarah Qureshi

Feb 28 (Reuters) - Gold fell on Friday, putting it on course for its first weekly loss in nine as the U.S. dollar strengthened and the market awaited an inflation print later in the day that could provide clarity on the Federal Reserve's policy path.

Spot gold XAU= fell 0.5% to $2,862.38 an ounce by 1157 GMT. Bullion lost over 2.5% for the week, its steepest weekly fall since November.

U.S. gold futures GCcv1 lost 0.7% to $2,875.

The dollar index .DXY was set for a weekly gain, making dollar-priced gold more expensive for overseas buyers. USD/

"Gold's overdue correction gathered some further momentum overnight as volatility spikes across markets force leveraged funds to reduce across-the-board exposure," Ole Hansen, head of commodity strategy at Saxo Bank, said.

Technology shares were dragged down by a sell-off in AI darling Nvidia and other "Magnificent Seven" Wall Street mega-cap stocks after the chipmaker's earnings report. MKTS/GLOB

Despite a potential weekly loss, safe-haven gold was poised to log a second straight monthly gain in February, propelled by nine record highs this month.

U.S. President Donald Trump said on Thursday his proposed 25% tariffs on Mexican and Canadian goods will take effect on March 4, with an extra 10% duty on Chinese imports.

Investors await the Personal Consumption Expenditures (PCE) data due at 1330 GMT to further analyse how the central bank might proceed with its rate-easing cycle.

"The Fed's preferred measure is expected to show a lower YoY figure, potentially lifting rate cut expectations, not least considering emerging weakness across U.S. economic data," Hansen said. FEDWATCH

Higher rates dampen the non-yielding asset's appeal.

On the physical market, India's gold demand rose in the second half of this week but remained lower than normal, while traders continued to offer discounts in China. GOL/AS

Spot silver XAG= fell 0.3% to $31.17, platinum XPT= lost 0.4% to $945.40 and palladium XPD= slipped 0.4% to $915.97. All three metals headed for monthly declines.

(Reporting by Anjana Anil and Sarah Qureshi in Bengaluru, Editing by Louise Heavens)

((Anjana.Anil@thomsonreuters.com;))