Gold inched higher and was poised for a second weekly gain on Friday, as a softer dollar provided some respite against higher U.S. bond yields and rising expectations that central banks could begin easing economic support.
Spot gold rose 0.1% to $1,785.00 U.S. per ounce overnight Friday. U.S. gold futures edged 0.2% higher to $1,786.00.
Bullion prices were en route to a second week of gains, aided by a weaker American dollar which was set to decline this week.
Bullion prices have traded in a broad $1,749-$1,800 range so far this month, with a steep rally in U.S. benchmark 10-year Treasury yields limiting its upside.
The U.S. Federal Reserve should let its $8 trillion balance sheet reduce over the next couple of years, Fed Governor Christopher Waller said on Thursday.
Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for holding bullion which pays no interest.
Spot silver rose 0.2% to $24.18 an ounce and was on track for a fifth consecutive weekly gain.
Platinum was up 0.5% at $1,053.80 per ounce and palladium gained 1% to $2,037.56.
