<p>Gold prices ticked up on Friday helped by a softer dollar, while investors braced for key U.S. inflation data and Federal Reserve's rate hike decision due next week.</p>.<p>Spot gold was up 0.2 per cent at $1,793.16 per ounce, as of 0241 GMT, but fell 0.3 per cent so far this week. US gold futures rose 0.2 per cent to $1,804.80.</p>.<p>The dollar index was down 0.1 per cent. A weaker dollar makes gold more attractive to buyers holding other currencies.</p>.<p>There is a real chance of upward accretion in gold as we head into next week's Fed meet and CPI data, said Clifford Bennett, chief economist at ACY Securities.</p>.<p>Market participants now expect a 93 per cent chance of a 50-basis point rate hike at the Federal Reserve's policy meeting on December 13-14. Investors will also watch out for the US Consumer Price Index (CPI) report for November due on December 13.</p>.<p>If the Fed slows the pace as per expectations, along with a relatively moderate CPI print, "then dollar might weaken and all of a sudden you could see a perfect storm rushing over gold's horizon," Bennett added.</p>.<p>Lower interest rates tend to be beneficial for bullion as they decrease the opportunity cost of holding the non-yielding asset.</p>.<p>"Traders will care to see what the Fed has to say about the trend of inflation and where rates could peak," Edward Moya, senior analyst with OANDA, said in a note.</p>.<p>"Gold looks like it will find a home around the $1,800 level, until we have further indications."</p>.<p>The number of Americans filing new claims for jobless benefits increased moderately last week, pointing to a still-tight and strong labor market despite growing fears of a recession.</p>.<p>Spot silver edged 0.6 per cent higher to $23.20, platinum rose 0.4 per cent to $1,006.91. Palladium lost 0.4 per cent to $1,918.50, but was headed for a second straight weekly gain.</p>
<p>Gold prices ticked up on Friday helped by a softer dollar, while investors braced for key U.S. inflation data and Federal Reserve's rate hike decision due next week.</p>.<p>Spot gold was up 0.2 per cent at $1,793.16 per ounce, as of 0241 GMT, but fell 0.3 per cent so far this week. US gold futures rose 0.2 per cent to $1,804.80.</p>.<p>The dollar index was down 0.1 per cent. A weaker dollar makes gold more attractive to buyers holding other currencies.</p>.<p>There is a real chance of upward accretion in gold as we head into next week's Fed meet and CPI data, said Clifford Bennett, chief economist at ACY Securities.</p>.<p>Market participants now expect a 93 per cent chance of a 50-basis point rate hike at the Federal Reserve's policy meeting on December 13-14. Investors will also watch out for the US Consumer Price Index (CPI) report for November due on December 13.</p>.<p>If the Fed slows the pace as per expectations, along with a relatively moderate CPI print, "then dollar might weaken and all of a sudden you could see a perfect storm rushing over gold's horizon," Bennett added.</p>.<p>Lower interest rates tend to be beneficial for bullion as they decrease the opportunity cost of holding the non-yielding asset.</p>.<p>"Traders will care to see what the Fed has to say about the trend of inflation and where rates could peak," Edward Moya, senior analyst with OANDA, said in a note.</p>.<p>"Gold looks like it will find a home around the $1,800 level, until we have further indications."</p>.<p>The number of Americans filing new claims for jobless benefits increased moderately last week, pointing to a still-tight and strong labor market despite growing fears of a recession.</p>.<p>Spot silver edged 0.6 per cent higher to $23.20, platinum rose 0.4 per cent to $1,006.91. Palladium lost 0.4 per cent to $1,918.50, but was headed for a second straight weekly gain.</p>