Gold Set for Biggest Weekly Loss in 3 Mos.

Gold prices fell to their lowest in a week on Friday, and were set for their biggest weekly fall since August, on a firmer dollar as the U.S. Federal Reserve indicated it will continue to raise interest rates, lowering demand for bullion.

Spot gold fell 0.4% to $1,218.23 U.S. per ounce early Friday morning, having touched its lowest level since Nov. 1 at $1,218.08.

Gold was down 1.2% for the week, its biggest weekly decline since the week of Aug. 17.

U.S. gold futures fell 0.3% to $1,221.70 U.S. per ounce.

The U.S. dollar gained against its major peers on Friday as the Fed on Thursday kept interest rates steady but reaffirmed its monetary tightening stance.

Higher interest rates raise the opportunity costs of holding gold, which does not pay interest and incurs costs to store and insure.

The U.S. central bank has hiked rates three times this year and is widely expected to do so again in December because of a robust U.S. economy, rising inflation and solid jobs growth.

Among other precious metals, silver fell 0.6% to $14.32 U.S. per ounce. The metal was headed for its biggest weekly percentage decline in nine weeks, slipping about 2% so far.

Platinum dipped 1.2 percent to $853.45 U.S. an ounce, its lowest level in a week. The metal was down about 1% so far for the week, its biggest fall since late September.

Palladium was down about 0.3% to $1,120.60 U.S. per ounce, though it was up 0.6% for the week, set for its fourth weekly gain.