Gold prices on Friday hovered near a four-month low hit in the previous session, after the U.S. Federal Reserve dampened expectations of a rate cut in the near term, boosting the U.S. dollar and setting the bullion on course for a weekly drop.
A stronger greenback makes gold costlier for holders of other currencies.
Spot gold was little changed at $1,271.25 U.S. per ounce, as of early Friday morning In the previous session, the yellow metal dropped to $1,265.85, its lowest since end-December.
The bullion has lost about 1.1% so far this week.
U.S. gold futures were steady at $1,272.20 an ounce.
On Wednesday, U.S. Federal Reserve Chair Jerome Powell said inflation risks flagged during the release of Gross Domestic Product data were only based on transitory factors, and that there was no obligation to readjust interest rates any time soon.
The Fed decision lifted U.S. Treasury yields to a one-week high, while the dollar looked set to end the week on a firmer note as markets scaled back bets on a U.S. rate cut.
The greenback has edged higher since Powell played down the recent slowing in inflation and saw no reason to cut interest rates.
Silver dipped 0.1 percent to $14.61 U.S. per ounce, holding close to a more than four-month low of $14.52 U.S. touched in the previous session.
Platinum edged 0.1% lower to $847.20 U.S. an ounce, having touched a one-month trough of $839 earlier in the session, while palladium fell 0.2% to $1,351.70 U.S. an ounce.
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