Gold prices rose on Friday as the dollar continued to weaken, and helped put bullion on track for a second straight weekly gain amid cooling bets for a more aggressive monetary policy by the US Federal Reserve.

Spot gold was up 0.4% at $1,857.79 per ounce, as of 0802 GMT.

US gold futures also rose 0.4% to $1,855.50. For the week so far, bullion is up about 0.7%.

Gold this week has been supported by a moderation somewhat in market expectations from the Fed’s monetary policy for next year, and most importantly the weaker US dollar, said Ilya Spivak, a currency strategist at DailyFX.

There is price support at $1,830 on the downside and on the topside the next key level is around $1,885, Spivak added.

Minutes of the Fed’s May 3-4 policy meeting released on Wednesday highlighted, as the market expected, that most participants favouring additional 50 basis point rate hikes at the June and July meetings.

Higher short-term US interest rates and bond yields raise the opportunity cost of holding bullion, which yields nothing.

The dollar index set for a second straight weekly decline, making bullion less expensive for buyers holding other currencies.

“We need a clearer signal that hard economic data is turning sour for the Fed to even think about a pause (in tightening)… hence gold investors are still reluctant to push the envelope significantly higher,” said Stephen Innes, managing partner at SPI Asset Management.

“If the Fed signals a pause, then gold will move much higher, but until they do so, we could be range trading for a bit.”

Gold prices slip as Fed affirms aggressive policy stance

Spot silver climbed 0.9% to $22.19 per ounce, and has gained about 2% so far this week.

Platinum was up 0.2% at $951.63. Palladium gained 0.7% to $2,028.00, and was set for a weekly gain of about 3.5%, its most since early April.