Gold held steady on Friday, set for its second consecutive weekly gain, supported by a weaker U.S. dollar as markets grew confident that the Federal Reserve was done with its interest rate hikes.
Spot gold held ground at $1,992.73 U.S. per ounce. Bullion has risen 0.7% this week. U.S. gold futures were little changed at $1,993.60 U.S.
The dollar index was on track for a second weekly drop, making gold less expensive for other currency holders.
Traders widely expect the Fed to leave rates unchanged in December, while pricing in about a 26% chance of a rate cut as early as March.
Lower rates decrease the opportunity cost of holding gold.
Spot gold may retest a resistance at $1,999 per ounce, a break above which could lead to a gain into $2,009 to $2,016 range.
Spot silver gained 0.2% to $23.71 U.S. per ounce, palladium rose 0.3% to $1,049.12 U.S. Platinum eased 0.1% to $914.68 U.S., but was heading for its second weekly rise.
