The markets has been anticipating a rate cut next month.
Gold has softened from its six-year high reached on the spot market yesterday of more than US$1,436 an ounce but remained above US$1,406 an ounce at the time of writing.
World Gold Council investment research manager Adam Perlaky said on Friday the gold price had risen 4% last week, its "largest weekly move to the upside since April 2016".
"Gold is having its best month in two years, having rallied nearly 8% in June, while it is up 10% over the past month," he said.
Uncertainty over the global economic outlook plus geopolitical concerns, from US-China trade woes and growing tensions between the US and Iran, have helped fuel the gold price rise.
"Any attack by Iran on anything American will be met with great and overwhelming force," US president Donald Trump tweeted earlier.
"In some areas, overwhelming will mean obliteration."