Gold prices edged up on Friday on a pullback in the American dollar but were still bound for their first weekly decline in three, weighed down by signals from U.S. central bankers that more interest rate hikes were on the way.
Spot gold rose 0.1% to $1,763.17 U.S. per ounce en route to a weekly decline of about 0.4%.
U.S. gold futures were up 0.2% to $1,765.50.
Gold continues to be supported by rising recession risks, the still-evolving Ukraine war and the peaking of the U.S. dollar, experts say.
Offering some respite to gold, the dollar index, a rival safe haven, inched lower, making bullion cheaper for overseas buyers.
However, the U.S. currency was still headed for its best week in a month, as hawkish remarks from Fed officials and stronger-than-expected domestic monthly retail sales put the brakes on a pullback triggered by signs of softening inflation.
Markets are currently pricing in an 87% chance of a 50-basis-point hike at the Fed’s December meeting, after four straight 75 bps increases.
High interest rates discourage investing in gold, which does not pay any interest.
Among other metals, spot silver rose 0.8% to $21.11 U.S. per ounce, platinum added 0.4% to $984.50, and palladium climbed 0.7% to $2,020.21 U.S.. All were, however, on course to end the week lower.
