Gold edged up from five-month lows on Friday as the dollar and bond yields retreated, with bullion headed for another weekly decline as encouraging data from the U.S. reinforced expectations the Federal Reserve was not done with hiking rates.

Spot gold gained 0.2% to $1,892.30 per ounce by 0745 GMT, after touching its lowest since mid-March on Thursday. U.S. gold futures rose 0.4% to $1,922.90.

"The U.S. dollar has eased from recent highs and this has allowed gold to make a modest move higher. There is likely some bargain hunting happening for the precious metal at these levels," KCM Trade Chief Market Analyst Tim Waterer said.

Benchmark 10-year U.S. Treasury yields also eased from their highest levels since October, making non-yielding bullion less attractive.

"The dollar will need to take a bearish turn at some point for gold to rediscover its mojo. Just how long gold will spend trading at sub-$1,900 levels will depend on how long the dollar remains bolstered by high bond yields," Waterer added.

Investors now await the central bankers' confab in Jackson Hole, Wyoming, next week for guidance on interest rates.

"The market is pricing in a more hawkish outlook at the moment on the emerging risk of potentially another Fed hike," said Baden Moore, head of carbon and commodity strategy at National Australia Bank.

Reflecting the bearishness among investors, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said holdings on Thursday fell by 6.93 metric tons, the biggest drop since July last year. At 887.50 metric tons, this is the lowest level since January 2020.

Spot silver rose 0.4% to $22.78. Platinum climbed 0.6% to $894.72 and palladium added 0.4% to $1,221.48, but both were set for weekly declines.

Investors are offloading Platinum Group Metals investments as moderating auto sales growth across regions weighed on sentiment, ANZ analysts said.

(Reporting by Swati Verma in Bengaluru; Editing by Rashmi Aich and Sohini Goswami)