Gold prices slipped on Friday, but the safe-haven metal was bound for its second straight quarterly rise after recent banking turmoil raised hopes of a less-aggressive U.S. Federal Reserve and shored up interest in bullion.
Spot gold was down 0.2% at $1,977.36 per ounce, as of 0912 GMT. U.S. gold futures eased 0.2% to $1,993.80.
Gold is currently just consolidating and there is focus on inflation data due later in the day, said Carlo Alberto De Casa, external analyst at Kinesis Money.
U.S. Personal Consumption Expenditures (PCE) data is due at 1230 GMT which could offer cues on the Fed's policy path.
Bullion has added more than 8% so far this quarter and was also headed for its best month since November, 2022.
The dollar index has tracked towards a quarterly loss, making gold an attractive investment.
Last week, gold topped $2,000 after the sudden collapse of two U.S. regional lenders earlier in the month drove bets that the U.S. central bank might pause hiking rates to stem the risk of contagion in the global banking system. But prices retreated after authorities initiated rescue measures.
"I still believe gold can climb over $2,000 in the medium term as the Fed is likely to remain dovish and in the case of further turmoil, it will attract safe-haven flows," De Casa added.
According to CME FedWatch tool, investors see a 43.5% chance of the Fed standing pat on interest rates in May.
Silver slipped 0.2% to $23.83 per ounce.
Platinum was flat at $985.65 while palladium gained 2% to $1,494.29. Both the metals headed for a quarterly fall.
"Palladium price more vulnerable to demand than supply shocks," Metals Focus said in a note.
"Automakers currently hold an abundance of PGMs, as they bought a larger quantity last year than they utilised. This overstocking has left the industry with an unusually long position in palladium."
(Reporting by Ashitha Shivaprasad in Bengaluru; editing by Jason Neely)