Gold was staring the end of a losing streak in the face Friday, set to report its first weekly rise in five weeks ahead, as investors digested U.S. inflation data, information that could have given clues on the pace of U.S. interest rate rises.
Bullion bumped up against strong technical resistance after the dollar and U.S. bond yields fell this week, helping the metal rise to its highest since Sept. 26.
Spot gold rose 0.7% to $1,302 U.S. Friday, rallying after the consumer price index reported a lower increase than forecast. It was set for a weekly gain of 1.4%.
U.S. gold futures for December delivery settled higher at $1,304.60 U.S. an ounce.
Gold is sensitive to rising rates because they push bond yields higher, thus reducing the attractiveness of non-yielding bullion, and such yields tend to boost the dollar, making gold more expensive for holders of other currencies. Minutes from the last U.S. Federal Reserve meeting released this week showed policymakers remained divided on U.S. inflation prospects.
Silver was up 0.9% at $17.32 U.S. an ounce, hitting its three-week high. Platinum was up 1.2% at $943.70 U.S. an ounce and palladium was 2.2% higher at $994.30 U.S..
