Gold rises with fall of dollar ahead of Fed

Gold prices rose on Friday, supported by a weak dollar, while investors prepared for important inflation data in the United States and the Federal Reserve’s decision to raise interest rates next week.

Spot gold increased 0.2% to $1,793.16 an ounce by 0241 GMT, but has fallen 0.3% since the beginning of the week.

US gold futures rose 0.2 percent to $1,804.80.

The dollar index fell 0.1 percent. A weaker dollar makes gold more attractive to buyers holding other currencies.

Market participants now expect a 93 percent chance of a 50 basis point rate hike at the Federal Reserve’s December 13-14 policy meeting. Investors will also be awaiting the US Consumer Price Index report for November, which is scheduled to be released on December 13th.

As for other precious metals, silver rose 0.6 percent to $ 23.20, while platinum increased 0.4 percent to $ 1006.91. Palladium lost 0.4 percent, recording $1,918.50, but is on track for its second consecutive weekly gain.