Gold is heading to record a weekly loss

Gold prices rose on Friday, supported by the decline in the dollar and US Treasury yields, but increased expectations of another big hike in US interest rates kept the precious metal on course for a weekly decline.

And the price of gold in spot transactions rose 0.3 percent to $ 1670 an ounce at 0641 GMT. Prices are down more than 1 percent so far during the week.

And gold futures contracts in the United States settled at 1676.60 dollars.

The dollar index fell 0.2 percent, making gold less expensive for buyers abroad. Meanwhile, US 10-year Treasury yields have slipped from the 14-year peak touched on Thursday.

Thursday’s data showed US consumer prices rose more than expected in September, supporting the Federal Reserve’s move to raise interest rates by 75 basis points for the fourth time in a row at the conclusion of its meeting on November 1-2.

Gold has traditionally been seen as a hedge against inflation and economic turmoil, but rising interest rates to control inflation have reduced the precious metal’s attractiveness because it does not yield a consistent return.

Spot silver rose 0.8 percent to $19.01 an ounce, but it is heading for the biggest weekly decline since August.

Platinum rose one percent to $904.77 and palladium 0.8 percent to $2,125.18. And both of them are heading towards recording their first weekly decline in three weeks.