Gold hovered near a three-month low on Friday and was set for its biggest weekly drop since February, as the American dollar strengthened after U.S. Federal Reserve Chief Jerome Powell hinted about more interest rate hikes.
Spot gold ticked up 0.2% to $1,917.63 per ounce but stayed close to a three-month low hit earlier in the session. Prices are down 2% for the week. U.S. gold futures rose 0.2% to $1,927.90.
The dollar index drew support from risk aversion globally, making bullion less attractive for overseas investors.
Powell, in his second day of testimony, said the U.S. central bank would move interest rates at a "careful pace" from here as policymakers edge towards a stopping point for their historic round of monetary policy tightening.
While gold is struggling to find any impetus amid the higher interest rate outlook, experts note the shiny yellow metal has shown an ability to stage a recovery after recent price dips.
