Gold gains on softer dollar, but heads for weekly fall

Business Recorder reported that spot gold climbed 0.2% to $4,177.82 per ounce by 0433 GMT on Friday, helped by a weaker dollar. The metal was still on course for a modest weekly decline of 0.5%, while traders assessed Federal Reserve hints about borrowing costs. December US gold futures rose 0.7% to $4,199.10.

OANDA's Kelvin Wong said gold had been stuck in a range, with the floor at $4,075 tested earlier this week. He also pointed to September core consumer and producer price figures that came in above forecasts, signalling persistent inflation. The dollar was heading for its first weekly drop in five weeks, which makes bullion cheaper for overseas buyers.

US producer prices posted their largest rise in four and a half years last month, following a jump in consumer prices in September driven by gasoline. Traders now put the odds of a rate increase later this month at 28% and at 89% for December, based on CME's FedWatch Tool. Higher interest rates reduce the appeal of gold, which pays no yield, while several large Indian mutual funds suspended bulk subscriptions to gold ETFs before the festive period.