Spot gold rose 0.3% to $1,800.47 per ounce by 0904 GMT. U.S. gold futures were up 0.2% at $1,804.00.
Lending support to gold, the dollar index was subdued on the day, making bullion more appealing for those holding other currencies.
But the U.S. currency was still set for a first weekly gain in three, which also put gold on track for a weekly decline of 1.3%. [USD/]
Gold is seeing a range-bound trade and since the metal is "primarily looked at in terms of the dollar... it's the Fed which has the big impact on the gold price," said UBS analyst Giovanni Staunovo.
"Essentially it's all related to the Fed, and everyone is waiting for the next announcement."
The Federal Open Market Committee is scheduled to next meet on September 21-22.
Gold investors closely follow cues from the Fed, since non-yielding bullion tends to gain when interest rates are low, while some consider bullion a hedge against higher inflation fuelled by massive stimulus.
And the signals were mixed, with a recent Fed report showing the U.S. economy "downshifted slightly" in August. But a number of Fed officials said this week the August slowdown in job growth would not throw off plans to reduce asset purchases this year.
However, gold continues to remain a buy on dips because central banks are in no hurry to raise interest rates, Stephen Innes, managing partner at SPI Asset Management.
"Growth is still a really big concern for central banks."
Elsewhere, silver climbed 0.6% to $24.21 per ounce and platinum rose 0.8% to $985.18. Palladium gained 1.7% to $2,216.50 but was down over 8% for the week.
(Reporting by Arundhati Sarkar and Eileen Soreng in Bengaluru;Editing by Elaine Hardcastle)
By Arundhati Sarkar
