Gold, on Friday, May 11, was set for its first weekly gain in four weeks on Friday after soft U.S. inflation data
suggested that the Federal Reserve could show caution on the pace of interest rate rises.
The weaker than expected April consumer price data on Thursday helped to knock the dollar from 2018 highs and push down U.S. bond yields. Both fell further on Friday.
That benefits gold because a weaker dollar makes bullion cheaper for users of other currencies, while lower bond yields make non-yielding gold more attractive to investors.
Spot gold was up 0.3 percent at $1,324.69 an ounce by 1028 GMT, having touched a two-week high of $1,325.06. It was up 0.7 percent for the week. U.S. gold futures for June delivery gained 0.2 percent to $1,324.70.
Gold has traded in a range of about $1,310 to $1,355 since hitting a 1-1/2 year high in January. Prices appeared to be building positive momentum, said technical analysts at ScotiaMocatta.
Gold is traditionally seen as a safe place to park assets in times of uncertainty.
In other precious metals, silver was up 0.5 percent at $16.75 an ounce, near 2-1/2 week highs and set for a 1.6 percent weekly gain.
Platinum was 0.1 percent down at $923.24, having hit its highest since April 25 at $927.40. Palladium advanced by 0.5 percent to $1,003.72, holding above its technically important 200-day moving average
after reaching its highest since April 23.
