LONDON, June 1 (Reuters) - Gold extended gains on Friday to hit a two-week high after the European Central Bank said it had no plans to sell any more gold this year, but a rise in the dollar may cap gains, dealers said.
Speculative buying also helped boost prices, but investors were still wary after sharp price falls last week.
The ECB said it had sold 37 tonness of gold from its reserves over the past two months, but it also said it had no plans for further sales in the current year of the central bank gold agreement.
"The ECB news really gave the market a big lift, it will definitely make it easier for gold to test the upside," a London-based trader said.
European central banks pledged to cap their total sales at 2,500 tonnes in the 2004-2009 period, or 500 tonnes a year. The third year of the five-year agreement runs until Sept. 26
