Gold has some sparkle, but it is still headed for a quarterly decline

Gold prices rose on Friday as the rise of the dollar and US Treasury bond yields halted, but it is on track to record a monthly and quarterly decline under pressure from growing expectations that the US Central Bank will keep interest rates high for a longer period.

Spot gold rose 0.2 percent to $1,867.80 an ounce by 1148 GMT. US gold futures increased 0.4 percent to $1,885.10 an ounce.

The dollar fell from a 10-month peak, and US Treasury bond yields fell from a 16-year peak, which increased the attractiveness of gold, but the currency and bonds are on their way to recording the best quarterly performance in a year.

Gold touched its lowest level in six months on Thursday and is on track to record its worst monthly performance in seven months, with a decline of 3.5 percent in September and a quarterly decline of 2.5 percent.

Higher interest rates increase the opportunity cost of holding the yellow metal, which is denominated in dollars and does not generate a return.

As for other precious metals, silver rose in spot transactions 2.1 percent to $23.07 per ounce, platinum also rose 0.9 percent to $912.54 per ounce, and palladium increased 0.1 percent to $1,273.69. If all of them manage to maintain the rise, the three metals are on track to record quarterly gains.