Gold retreated slightly on Friday on some profit taking after rising to a two-week high and a 1.5 percent gain the previous session, yet the metal was set for a weekly gain.
The precious metal hit a high of $1243.14 an ounce on Thursday, while currently trading around $1235.28 from the opening at $1240.00.
On the weekly basis, gold is preparing for its second straight weekly advance and the best weekly gain since the week ended March 4.
The yellow metal soared as Fed minutes for March’ policy meeting released on Wednesday showed the majority of policymakers preferred a more cautious interest rate path.
“Several expressed the view that a cautious approach to raising rates would be prudent or noted their concern that raising the target range as soon as April would signal a sense of urgency they did not think appropriate,” the minutes said.
Now, analysts believe the first interest rate increase would not occur before June, giving support to non-interest bullion.
Fed Chairwoman Janet Yellen said the U.S. economy is on a solid course and still on track to warrant further borrowing cost increases.
The dollar index, which tracks the green currency’s movements, inched down to 94.48 to remain trading near its lowest level in five years.
Against the yen, the dollar rebounded 17-month high low to 108.74, rising for the first time in six sessions.
Later in the day, Federal Reserve Bank of New York President William Dudley will speak about the economy at the University of Bridgeport.
