Ahead of day two of testimony, gold for August delivery GCQ7, +0.08% rose $2.70, or 0.2%, to $1,221.80 an ounce.
Looking ahead, investors are awaiting a host of USA economic indicators, including core inflation, retail sales and industrial production for June later in the session for more insight into how the Fed might proceed. It was up 1.6pc for the week so far, which would be its biggest weekly gain since mid May.
Gold retreated from earlier gains on Thursday as the USA dollar turned higher and global stocks gained on upbeat data, even as investors wagered that policy tightening in the United States would be glacial at best.
Friday's "data reaffirms the delay", he said. USA gold futures for August delivery fell 0.2 percent to $1,214.80 per ounce. The contract finished the week up 1.5 per cent, its first gain in six weeks.
The dollar was little changed against a group of peers early on Friday, as currency investors remained cautious ahead of US inflation data due later in the session.
A weaker greenback boosts gold, making the dollar-priced commodity cheaper for investors holding other currencies. "In order to turn neutral again we need to move back above that level", he said.
Meanwhile, SPDR Gold Trust slipped 0.43% to 828.84 tonnes on Thursday from 832.39 tonnes on Wednesday. Economists expect inflation was 0.2 per cent in the three months ended June 30, for an annual rate of 1.9 per cent, according to the median in a poll of 15 economists surveyed by Bloomberg.
In silver, there was a sharp split between funds, which had largely sold off their record long position, and ETF investors, who had been recently buying, Hansen said.
Palladium advanced 0.4 percent to $855.49 per ounce, set to end the week nearly 2 percent higher.
Hinchcliffe still fine tuning heading into hometown race
Meanwhile from 11th and 16th, Marco Andretti and Ryan Hunter-Reay needed some help to make it up the order on Sunday. Notes: Canadian singer-songwriter Tom Cochrane served as the grand marshal for the pre-race ceremonies.