Gold prices inched up on Friday but were set for a weekly decline, as the U.S. dollar and Treasury yields rebounded ahead of Federal Reserve Chair Jerome Powell's speech that could offer fresh insights on the central bank's interest rate cuts plans, reports Reuters.
Spot gold rose 0.3 per cent to $2,491.35 per ounce by 0602 GMT and U.S. gold futures gained 0.4 per cent to $2,526.80.
"Gold's stay below $2,500 could be temporary in nature, with the fundamentals still appearing favourable for the precious metal," said Tim Waterer, chief market analyst, KCM Trade.
After hitting an all-time high of $2,531.60 on Tuesday, bullion has fallen nearly 1 per cent this week, hurt by a bounce in dollar index and benchmark U.S. 10-year yields. Powell is expected to deliver remarks at the annual central banking conference in Jackson Hole, Wyoming at 1400 GMT.
Fed policymakers on Thursday supported starting rate cuts next month as inflation eases and the labor market cools, though one cautioned against rushing to ease policy.
Traders have fully priced in Fed easing next month, with a 76 per cent chance of a 25-basis-point cut, according to CME FedWatch tool. A low interest rate environment tends to boost non-yielding bullion's appeal.
After a strong rally, a pullback to $2,470-$2,475 is expected, offering a fresh entry point and if geopolitical tensions rise, gold may break $2,524 resistance level further pushing gold to $2,580, said Ajay Kedia, director at Kedia Commodities, Mumbai.
Platinum gained 1.1 per cent to $953.55 and palladium was flat at $932.48. Both metals were on track for a weekly decline.
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