Gold edged up on Friday from the previous day's 2-1/2-week low, supported by a softer dollar and uncertainty over Greece's debt talks, but remained under pressure from expectations U.S. interest rates might rise soon.
The prospect of higher rates, which would boost the opportunity cost of holding non-yielding gold while lifting the dollar, kept the metal on track for a second weekly drop.
Spot gold was up 0.3 percent at $1,190.70 an ounce, on track to close May up 0.6 pct, the second straight small monthly increase. U.S. gold futures for June delivery settled up $1.30 an ounce at $1,189.40.
``The gold market will eventually have to discount the fact that the Fed is not going to put through a series of rate hikes, one after the other, but will rather just put in one in and wait,'' said Edward Meir, INTL FCStone analyst.
``If it does that, I think the market should respond by moving a bit higher. In the meantime, we're in this drift doing nothing.''