Gold prices ticked higher on Friday, helped by a pullback in the US dollar and Treasury yields, although growing anticipation of another oversized US Federal Reserve interest rate hike kept the bullion on track for a weekly decline.
Spot gold was up 0.2% at $1,668.46 per ounce, as of 0402 GMT.
Prices were down 1.6% so far for the week. US gold futures inched 0.1% down at $1,666.80.
The dollar index was down 0.2%, making bullion less expensive for overseas buyers. Meanwhile, benchmark US 10-year Treasury yields were off a 14-year peak touched on Thursday.
“Gold is stuck between not seeing a pivot any time soon but there is a light at the end of the tunnel here in the sense that the Fed might pause,” said Stephen Innes, managing partner at SPI Asset Management.
“In medium term there’s greater chance for gold to go higher than lower.
We’re going to see negative outcomes in the economies globally, which could eventually tip the scales in favour of rate cuts.“
Data released on Thursday showed US consumer prices increased more than expected in September, as rents surged by the most since 1990 and the cost of food also rose, with core CPI jumping 6.6% on an annual basis.
Traders are largely expecting a fourth straight 75-basis-point increase at the close of the Fed’s Nov. 1-2 meeting.
Although traditionally seen as a hedge against inflation and economic turmoil, interest rate hikes to control soaring prices have reduced bullion’s appeal since it yields no interest.
According to Reuters technical analyst Wang Tao, spot gold looks neutral in a range of $1,660 to $1,674 per ounce, and an escape could suggest a direction.
Spot silver rose 0.6% to $18.98 per ounce and was set for its biggest weekly decline since August.
Platinum rose 0.5% to $900.49 and palladium was 0.9% higher at $2,125.50. Both metals were headed for their first weekly drop in three.