Gold is heading towards the best weekly performance in three weeks

Gold prices fell on Friday before the announcement of important US jobs data. However, they are still on track to record the best weekly performance in three weeks, with the dollar weakening due to expectations of a slowdown in the rate hike at the Federal Reserve and indications of declining inflation.

And by 0247 GMT, spot gold fell 0.3 percent to $ 1,796.71 an ounce, after reaching its highest level since August 10 at $ 1,804.46 an ounce earlier in the session.

US gold futures fell 0.2 percent to $1,810.70 an ounce.

Gold prices increased by about 2.4 percent this week, in what would be the second consecutive weekly gain.

The dollar index held firm during Friday, but is on track to incur a weekly loss of about 1 percent, affected by expectations that US interest rates will reach their peak.

The dollar’s fall reduces the price of gold for buyers holding other currencies.

Fed Chairman Jerome Powell said that it was time to slow down the rate hike this week.

Investors are now awaiting the US non-farm payroll data due on Friday, looking for indications of how the rate hike will affect the labor market.

As for other precious metals, silver fell in spot transactions by 0.7 percent, to $ 22.61 an ounce.

Platinum settled at $1041.38 an ounce, while palladium fell 1 percent to $1922.13 an ounce.