Gold is heading for gains for the third week

Gold prices are heading for a third straight week of gains on Friday after data showing a slowdown in inflation reinforced bets on a cut in interest rates in the United States, while traders await comments from Federal Reserve Chairman Jerome Powell later on Friday.

Gold rose in spot transactions 0.2 percent to $2,039.42 per ounce by 0427 GMT, after recording a rise of more than $60 in November, the second monthly increase in a row.

US gold futures for February delivery also rose 0.1 percent to $2,059.00.

Data on Thursday showed that US consumer spending rose moderately in October, while the annual increase in inflation was the smallest in more than two and a half years.

The decline in inflationary pressures and the decline in the strength of the labor market paves the way for an end to the cycle of raising interest rates and also enhances the possibility of lowering interest rates in the coming months.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion.

As for other precious metals, silver rose in spot transactions 0.2 percent to $25.29 per ounce, platinum fell 0.1 percent to $925.67, and palladium increased 0.6 percent to $1,013.52 per ounce.