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Gold prices rose on Friday and were on track for a second consecutive weekly gain on a softer dollar, while expectations of more aggressive interest rate hikes by the U.S. Federal Reserve eased.

Spot gold rose 0.5% to $1,858.97 per ounce by 1142 GMT. U.S. gold futures were also up 0.5% at $1,856.60.

The dollar index, which measures the greenback against a basket of six other major currencies, headed for a second consecutive week of declines, having hit a one-month low earlier on Friday. [USD/]

There is a little downward revision in terms of markets' expectations of how quickly the Fed will raise interest rates, taking some of the pressure off gold as well, said Nitesh Shah, a WisdomTree analyst.

"Many people are wondering right now how much risk there is of central banks overdoing it with their hawkish rhetoric."

Minutes of the Fed's May 3-4 policy meeting released on Wednesday highlighted, as the market expected, that most participants favour additional 50 basis point rate hikes at the June and July meetings.

The minutes showed the Fed grappling with how best to navigate the economy towards lower inflation without causing a recession or pushing the unemployment rate substantially higher.

Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion and also boosts the dollar, in which it is priced.

"Gold looks now to have found its true level and is likely to oscillate around the $1,840-$1,860 an ounce range until there is a fresh catalyst," Rupert Rowling, market analyst at Kinesis Money, said in a note.

Spot silver climbed 1.5% to $22.33 per ounce, and has gained about 2.7% so far this week.

Platinum rose 0.2% to $951.66. Palladium was 0.9% higher at $2,032.09, and was set for a weekly gain of about 3%, its most since early April.