Gold prices went higher on Friday as dollar slipped, but it was prone to further losses ahead of USA key economic data and European Central Bank meeting in the coming week.
Stock markets throughout Asia continued to gain ground on Friday, with investors anticipating relatively strong economic performances in both the USA and the major Asian economies for the rest of the year.
Looking ahead, investors are awaiting a host of USA economic indicators, including core inflation, retail sales and industrial production for June later in the session for more insight into how the Fed might proceed.
Spot gold gained 0.96 per cent at US$1,228.61 per ounce by 3:01pm EDT (1901 GMT) after hitting US$1,232.76. It was up 1.6pc for the week so far, which would be its biggest weekly gain since mid May.
Fed Chair Janet Yellen's comments to the US Congress this week "were more dovish than originally anticipated", said David Meger, director of metals trading for High Ridge Futures in Chicago. "We're seeing precious (prices) buoyed on the back of that".More news: Israel says to reopen Al-Aqsa mosque after deadly attack
The New Zealand dollar held onto its overnight gains but was headed for a 0.8 percent weekly decline as investors await several United States economic indicators, including inflation numbers. The contract finished the week up 1.5 per cent, its first gain in six weeks.
However, Mr Bassanese believes while the RBA will be annoyed by the Aussie dollar's climb, it will keep the cash rate at a record low of 1.5 per cent for a while yet. A stronger US currency weighs on gold, making the dollar - p riced commodity more expensive for non - USA investors. A quarterly inflation rate of 0.2 percent is expected for an annual rate of 1.9 percent.
Meanwhile, holdings at the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund fell 0.43 percent to 828.84 tonnes on Thursday from 832.39 tonnes on Wednesday.
Palladium gained 0.81 per cent at US$858.65 per ounce and was set to end the week 2.4 per cent higher.