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Gold prices moved in a tight range on Friday as traders weighed recent U.S. economic data and hawkish signals from the Federal Reserve, while a relatively softer dollar provided some support to bullion.

Spot gold was flat at $1,957.84 per ounce by 0238 GMT. U.S. gold futures too were listless at $1,970.30.

Bullion tumbled to a three-month low on Thursday before reversing course to finish higher after U.S. economic data offered some respite from the Fed's "hawkish pause" on rate hikes.

"Gold is struggling to move higher because the Fed's message on inflation and interest rates still remains hawkish. So, it's sort of removing the incentive to buy gold because there are more interest rate increases on the horizon," said Edward Meir, a metals analyst at Marex.

While gold is considered a safe haven during economic uncertainties, higher interest rates dull the appeal for zero-yield bullion.

Traders are now pricing in a 72% chance of a 25-basis point rate hike in July, after the Fed signalled in new projections that borrowing costs might still need to rise by as much as half a percentage point by year-end.

The dollar index held close to a one-month low, making gold less expensive for buyers holding other currencies.

In the next two weeks, gold could trade in the $1,931- $2,000 range, with stiff resistance seen at the upper end, Meir added.

The Bank of Japan, meanwhile, maintained its ultra-easy monetary policy despite stronger-than-expected inflation, as it focuses on supporting a fragile economic recovery amid a sharp slowdown in global growth.

Spot silver advanced 0.2% to $23.9098 per ounce and platinum ticked higher 0.1% to $986.86. But both metals were headed for a weekly loss.

Palladium eased 0.1% to $1,397.90, but was set for its best week since April.