Gold hovered near a three month low on Friday and was set for its biggest weekly drop since February, as the dollar strengthened after U.S. Federal Reserve Chief Jerome Powell hinted about more interest rate hikes.

Spot gold ticked up 0.2% to $1,916.39 per ounce by 0450 GMT but stayed close to a three-month low hit earlier in the session. Prices are down 2% for the week. U.S. gold futures held steady at $1,925.90.

The dollar index drew support from risk aversion globally, making bullion less attractive for overseas investors.

Powell in his second day of testimony said the U.S. central bank would move interest rates at a "careful pace" from here as policymakers edge towards a stopping point for their historic round of monetary policy tightening.

Spot silver was up 0.2% to $22.2746 per ounce, while platinum fell 0.3% to $919.89.

Palladium ticked 0.1% higher to $1,285.00 after hitting its lowest since May 2019 in the previous session.

Source : Reuters