US gold futures were up 0.2% at $1,765.60. (File)Gold prices edged up today on a pullback in the dollar, but were still bound for their first weekly decline in three, weighed down by signals from US central bankers that more interest rate hikes were on the way.Spot gold rose 0.16% to $1,763.65 per ounce by 0433 GMT, set for a weekly decline of about 0.4%.US gold futures were up 0.2% at $1,765.60.Gold could remain volatile until there’s clear direction from the Federal Reserve, said Jigar Trivedi, analyst at Mumbai-based Reliance Securities.Offering some respite to gold, the dollar index, a rival safe haven, inched lower, making bullion cheaper for overseas buyers.However, the U.S. currency was still headed for its best week in a month, as hawkish remarks from Fed officials and strong retail sales put the brakes on a pullback triggered by signs of softening inflation. [USD/]Markets are currently pricing in an 87% chance of a 50-basis-point hike at the Fed’s December meeting, after four straight 75 bps hikes.Gold continues to be supported by rising recession risks, the still-evolving Ukraine war and the peaking of the U.S. dollar, Fitch Solutions said in a note.”On the other hand, growing optimism towards the Chinese economy, still high risks of the U.S. Federal Reserve raising rates further and more aggressively than the market expects, and a peaking of inflation in Q3 will continue to pressure gold.”Although gold is seen as an inflation hedge, higher interest rates and bond yields raise the opportunity cost of holding bullion.Analysts said institutional investors are wary and further gains for gold could be elusive.Among other metals, spot silver rose 0.8% to $21.12 per ounce, platinum added 0.5% to $984.48, and palladium gained 0.7% to $2,020.19. All were, however, on course to end the week lower.(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)Featured Video Of The DayWhat Google Said After Facing Rs 936 Crore Fine In India
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