- Palladium, platinum set for weekly drops
- Dollar eases from near highest in 2021
- Gold set for first weekly gain in a month
Gold inched higher on Friday as a weaker dollar and worries about rising inflation and risks to growth countered bets for looming interest rate hikes, keeping bullion on course for a small weekly gain.
Spot gold gained 0.1% to $1,758.58 per ounce by 1424 GMT. US gold futures rose 0.1% to $1,759.00.
The dollar pulled back, making gold less expensive in other currencies, encouraging demand.
Gold was on track for its first weekly uptick since Sept. 3, rising about 0.6% so far, as a retreat in the dollar on Thursday helped it bounce about 2%.
Dips in the dollar and lower bond yields are keeping gold supported, while investors reposition for the fourth quarter, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
Helping gold's appeal, European and Asian stocks fell on worries about inflation and possible slowdown in growth.
"Anyone trying to convince market participants that inflation is not here, that's a fool's game," and with soaring energy prices due to a crunch in China and Europe likely to hit growth and earnings, that will leave us with a volatile October and, in turn, support gold, Saxo Bank analyst Ole Hansen said.
Prospects that the US Fed may still wind down economic support this year also continued to pressure gold, some analysts said, since reduced stimulus and higher interest rates tend to push government bond yields up, raising gold's opportunity cost.
Silver added 1% to $22.42 per ounce.
Platinum rose 1% to $972.64 per ounce, while palladium fell 0.27 % to $1,904.60, with both en route to weekly dips.
Apart from the semiconductor tightness hurting the automobile industry, amid low liquidity, palladium's declines are also driven by general weakness "across the industrial metals coming out of China," Hansen added.