Gold prices hit a two-week high on Friday on a weaker U.S. dollar and was set to close the year more than 9% higher, snapping three years of annual declines.
Spot gold was down 0.1% at $1,156.91 an ounce as the clock approached noon ET Friday, having hit its highest since Dec. 14 at $1,163.14 U.S. Moreover, U.S. gold futures were down 0.01% to $1,158.20 U.S. an ounce.
In the first half of 2016, investors increased exposure to the shiny yellow as the U.S. Federal Reserve showed caution on raising interest rates due to concerns about global growth, while Britain's vote to leave the European Union curbed appetite for risk and pushed the metal to a two-year high in July.
However, gold prices fell more than 8% in November, on higher U.S. Treasury yields after Donald Trump's election win led to speculation his commitment to infrastructure spending would spur growth. The Fed has since raised rates and signaled more hikes were to come in the New Year.
Other precious metals were also set to end the year positive territory, with palladium up more than 19% so far in 2016, though unchanged in price Friday at $671.84 U.S. an ounce.
For its part, platinum gained 0.4% to $901.00 U.S., heading for a yearly rise of just over 1%, its first annual gain in four years.
