Gold prices retreated on Friday as the dollar rebounded, after growing US stimulus hopes drove a three-day rally in bullion, putting the metal on course for a third consecutive weekly gain.

Spot gold dipped 0.1% to $1,884.41 per ounce by 0531 GMT. For the week, it was up 2.4%. US gold futures slipped 0.1% to $1,889.40.

"The U.S fiscal stimulus is more or less priced in ... so traders are trying to lock in profit before the weekend," said Margaret Yang, a strategist at DailyFX.

US Congressional Republicans and Democrats scrambled to pass a new round of coronavirus aid on Thursday with lawmakers from both parties saying that failure to reach an agreement was no longer an option.

While a stimulus deal could spur gold prices higher, a more sustained ascent would require signs of a significant pick-up in inflationary pressures, said FXTM market analyst Han Tan.

The US dollar rose 0.2%, just above a more than two-year trough, lowering gold's appeal to other currency holders.

A break above the $1,892 area with support from a dovish U.S Federal Reserve and a weaker dollar could signal further upside with resistance at $1,910 ahead, Yang said.

Analysts also said gold would find support from the Fed's promise to continue its bond-buying programme until "substantial further progress" is seen in restoring full employment and hitting its 2% inflation target.

Silver slipped 1.1% to $25.77 an ounce. Platinum fell 1% to $1,033.67 and palladium rose 0.1% to $2,343.18 and was up 0.8% for the week.