Gold prices rallied 1 percent on Friday on the back of a retreat in the dollar, but the metal was set to end the month lower on bets of aggressive policy tightening by the U.S. Federal Reserve.
Spot gold was up 0.7 percent at $1,908.20 per ounce by 1607 GMT. However, it was on course its first monthly drop since January with a decline of 1.5 percent so far in April.
U.S. gold futures gained 1.1 percent to $1,911.20 per ounce.
“Gold market has seen consistent sell-off in the past weeks as the dollar rallied. Currently, the dollar index has declined, which is lifting gold prices,” said Edward Meir, an analyst with ED&F Man Capital Markets.
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