Gold firmed on Friday but was poised to record its biggest weekly decline in six, as comments from Federal Reserve policymakers through the week lowered expectations of an early rate cut.
Spot gold rose 0.2 percent to $2,027.49 per ounce, but was down 1 percent so far in the week.
US gold futures settled 0.4 percent higher at $2029.3.
The dollar index dipped 0.2 percent but was up 1 percent for the week. A stronger dollar makes greenback-priced gold more expensive for foreign currency holders.
Over the week, the markets have been speculating about the Federal Reserve’s timing for rate cuts that has reflected in gold prices, said Bart Melek, head of commodity strategies at TD Securities.
Chicago Fed President Austan Goolsbee said on Friday that the Fed needs more inflation data in hand before any rate cut judgment could be made. Atlanta Fed President Raphael Bostic on Thursday said the baseline for cuts to start was in the third quarter.
Traders now expect about a 47 percent chance of a rate cut in March, down from 71 percent last week, according to CME’s Fed Watch Tool.