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Gold prices edged above $1,900 per ounce level on Friday, supported by a pullback in the dollar and lower bond yields, after data showing a rise in U.S. inflation was viewed inadequate to alter the Federal Reserve's easy monetary policy.

Spot gold was up 0.1% at $1,900.51 per ounce, as of 0313 GMT. Prices have risen more than 0.5% this week.

U.S. gold futures rose 0.3% to $1,902.90 per ounce.

Data showed U.S. consumer prices rose solidly in May, leading to the biggest annual increase in nearly 13 years, while weekly jobless claims dropped to their lowest level in nearly 15 months last week.

"The rise in U.S. inflation failed to spark a tapering sell-off. That saw bond yields edge lower helping gold to bounce back," said Jeffrey Halley, senior market analyst at OANDA.

"The FOMC next week is now likely to be a non-event, and barring a sharp rise in the dollar. Gold looks set to test resistance at $1,920 early next week, as the asset price appreciation trade gains new momentum."

The benchmark U.S. Treasury yields dropped to a three-month low, reducing the opportunity cost of holding non-interest bearing bullion.

The dollar index, meanwhile, fell 0.1% after hitting a near one-week high in the previous session.

On Thursday, the European Central Bank kept its monetary policy unchanged and pledged a steady flow of stimulus over the summer.

Focus now shifts to Fed's June 15-16 policy meeting.

The Fed is likely to announce in August or September a strategy for reducing its massive bond-buying program, but would not start cutting monthly purchases until early next year, according to a Reuters poll.

Silver rose 0.5% to $28.10 per ounce, while platinum was steady at $1,151.47.

Palladium eased 0.3% to $2,768.65 and was on track for a weekly decline.

(Reporting by Brijesh Patel in Bengaluru; Editing by Ramakrishnan M. and Rashmi Aich)