Gold hovered near record levels on Friday and was on track for a weekly gain after the U.S. Federal Reserve's recent oversized interest rate reduction and on signs that further cuts were on the horizon.

Gold pulled back from a record high after Federal Reserve Chairman Jerome Powell signaled policymakers aren’t in a rush to aggressively lower interest rates following Wednesday’s half percentage point cut by the US central bank.

* U.S. gold futures fell 0.6% to $2,582.70. * The U.S. dollar rose broadly, recovering from an earlier tumble caused by the Fed's rate-cut decision. A stronger dollar makes gold more expensive for other currency holders.