Gold rose on the day on Friday, climbing above the prior session's 10-1/2 month low, as the dollar and U.S. stocks dipped at the end of a volatile week highlighted by the Federal Reserve's signal that there could be more rate hikes than previously expected in 2017.
Spot gold was up 0.5% at $1,134.11 U.S. an ounce. The metal hit $1,122.35 U.S. on Thursday, its weakest since Feb. 2 and is down more than 2% this week, leaving it on track for its sixth consecutive weekly loss.
Gold prices rose to session highs after U.S. officials told media outlets that a Chinese warship had seized an underwater drone deployed by a U.S. oceanographic vessel in the South China Sea.
Experts say higher interest rates next year could propel the U.S. currency to higher levels, which when it rises makes gold more expensive for non-U.S. firms.
Elsewhere among precious metals, silver gained 0.8% at $16.08 U.S. an ounce, after falling more than 5% on Thursday.
Platinum rose 1.3% to $905.10 U.S. after dropping to the lowest since early February in the previous session. Palladium was down 1.2% to $692.00 U.S, on track to end the week down more than 5%
