"The market has re-priced the chances of a June rate move to 30 percent from 5 percent but the hurdles for a June hike remain substantial and gold has avoided significant technical damage, which has encouraged modest short-covering as well as continued ETF-related buying despite a hawkish lilt in Fed commentary today," said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York.
Short-dated U.S. Treasury yields inched up and global stock markets were little changed as investors weighed the possibility that rates could soon rise. The Fed's policymakers are scheduled to speak this week and are expected to back the case for a rate hike within months. Fed Chair Janet Yellen will be at a panel event hosted by Harvard University on Friday.
Holdings in the world's largest gold-backed ETF SPDR Gold Trust rose 1 percent to 869.26 tonnes on Friday, the highest since November 2013.
Silver futures dropped 0.68 percent to $16.42 an ounce, platinum futures were down 1 percent at $1,013.500 an ounce and palladium futures fell 1.45 percent to $550.80 an ounce.
— CNBC's Gina Francolla contributed to this report.