Gold was set for a modest weekly decline after being buffeted by the Federal Reserve and the European Central Bank.

The precious metal was steady on Friday near $1,960 an ounce. It rose 0.8% on Thursday as the ECB lifted rates a quarter-point, with President Christine Lagarde describing a further hike in July as "very likely." The dollar and Treasury yields dropped in response.

Bullion had fallen earlier in the week after the Fed paused its tightening cycle, but said more hikes were likely later in the year. Higher interest rates are generally negative for gold, which doesn't offer any interest

Spot gold declined 0.1% to $1,956.99 an ounce as of 8:54 a.m. in Singapore and was down 0.2% for the week. The Bloomberg Dollar Spot Index was little changed after falling 0.7% on Thursday. Silver was flat, while platinum and palladium edged lower.

Source : Bloomberg