Gold prices dropped on Friday after rising more than 1% in the previous session, but hopes that the Federal Reserve will not raise interest rates have positioned the yellow metal for weekly gains. Spot gold decreased by 0.2% to $1964.79 per ounce, but is on track to record a weekly increase of 0.9%. U.S. gold futures remained stable at $1979.80.
The dollar index hovered near the low levels reached in the previous session. A weaker dollar makes gold less expensive for overseas buyers.
Attention is now turning to the U.S. consumer price index report for May, scheduled for release on June 13, ahead of the central bank meeting, which will provide investors with greater clarity on the strength of the world's largest economy.
As for other precious metals, silver rose by 0.4% in spot transactions to $24.3387, and palladium increased by 0.3% to $1365.39. Platinum gained 0.5% to $1015.48, aiming to achieve gains after two consecutive weeks of decline.
