Gold inched up on Friday as optimism over U.S.-China trade talks pressured the dollar, but signs that the U.S. Federal Reserve could raise interest rates again this year kept prices below a 10-month high hit earlier this week.
Spot gold had risen 0.2 percent to $1,325.52 per ounce as of 0548 GMT. The metal was headed for a second straight weekly rise, up almost 0.4 percent this week.
U.S. gold futures were subdued at $1,328.1 per ounce.
The dollar index against a basket of six major currencies was set to decline about 0.3 percent this week, which could be its biggest weekly fall in a month.
Gold had hit a 10-month high of $1,346.73 on Wednesday, but minutes from the Fed’s January policy meeting indicated there might in fact be a rate hike this year, erasing gains in gold.
Source : Reuters