Gold prices rose on Friday, helped by a decline in the US dollar and Treasury yields, although growing anticipation of another oversized interest rate hike from the US Federal Reserve kept bullion on the right path for a weekly decline.
Spot gold rose 0.2% to $1,668.46 an ounce, by 0402 GMT. Prices are down 1.6% so far for the week.
US gold futures edged down 0.1% to $1,666.80.
The dollar index fell 0.2%, making bullion cheaper for overseas buyers. Meanwhile, benchmark 10-year U.S. Treasury yields were below a 14-year high hit on Thursday. [USD/] [US/]
“Gold is stuck between not seeing a pivot anytime soon, but there is light at the end of the tunnel here in the sense that the Fed could take a breather,” said Stephen Innes, managing partner at SPI Asset Management.
“In the medium term, gold is more likely to go higher than lower. We are going to see negative results in global economies, which could eventually tip the scales in favor of rate cuts.”
Data released on Thursday showed consumer prices in the United States rose more than expected in September, with rents rising the most since 1990 and the cost of food also rising, with core CPI jumping 6 .6% on an annual basis.
Traders are widely expecting a fourth consecutive 75 basis point increase at the close of the November 1-2 Fed meeting.
Although traditionally seen as a hedge against inflation and economic turmoil, interest rate hikes to control soaring prices have reduced the appeal of bullion since they earn no interest.
According to Reuters technical analyst Wang Tao, spot gold looks neutral in the range of $1,660 to $1,674 an ounce, and a leak could suggest direction.
Spot silver rose 0.6% to $18.98 an ounce and was expected to see its biggest weekly decline since August.
Platinum rose 0.5% to $900.49 and palladium rose 0.9% to $2,125.50. Both metals were heading for their first weekly decline in three.
(Reporting by Eileen Soreng and Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)
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