Gold firms as dollar eases --

Gold prices rose on Thursday on a slight pullback in the US dollar but investor caution surrounding the Federal Reserve's interest rate strategy and other economic cues that may influence it kept bullion hemmed in a relatively tight range, reports Reuters.

Spot gold rose 0.3 per cent to $1,945.69 per ounce by 7:26 a.m. (1126 GMT) after shedding 1 per cent in the previous session. US gold futures rose 0.1 per cent to $1,959.90.

Offering some respite to gold, the dollar index eased 0.2 per cent, but was still close to its highest in nearly three months.

Gold wasn't trading in any particular direction ahead of the Fed's meeting next week, said Bank of China International analyst Xiao Fu, adding that central bank buying of gold was bound to keep bullion supported.

Economists polled by Reuters see the Fed pausing interest rate hikes for the first time in more than a year at its meeting.

Other analysts have also said gold was likely to be rangebound ahead of the U.S. consumer inflation print on June 13 and the Fed meeting on June 13-14.

Silver gained 1 per cent to $23.70 per ounce, platinum fell 0.4 per cent to $1,014.04, while palladium was down 0.6 per cent to $1,380.97.