Elsewhere, gold demand in India was subdued this week as volatile prices discouraged buyers, while investment demand remained strong in top consumer China. GOL/AS
Among other metals, spot silver XAG= rose 0.8% to $64.08 per ounce, but was down 3% for the week.
Platinum XPT= climbed 1.3% to $1,800.25, and palladium XPD= gained 1.6% to $1,302.67. However, both metals were on track for a weekly loss.
Gold rises as oil slips ahead of U.S. inflation data
Spot gold rose on Friday as oil prices slipped, and investors awaited a key U.S. inflation report for further clues on the Federal Reserve's monetary policy trajectory.
Spot gold XAU= rose 0.7% to $4,346.44 per ounce by 0859 GMT, but was headed for a weekly loss. Prices fell nearly 2% on Thursday after the producer price index data showed prices increased in line with expectations in August amid a rebound in the cost of energy products.
U.S. gold futures GCcv1 dropped 0.4% to $4,388.40.
The precious metal is benefitting from "softer oil prices on hopes a Monday meeting between GCC ministers and Iran can yield some results regarding the passage of oil through the Strait," said Ole Hansen, head of commodity strategy at Saxo Bank.
"In addition, buyers once again emerged ahead of a key support area around $4,300."
Higher oil prices stoke inflation fears and bolster expectations of the Fed raising interest rates. While gold is typically seen as an inflation hedge, higher interest rates diminish the appeal of non-yielding bullion.
Gulf talks and Fed rate expectations remain in focus
Gulf foreign ministers plan to meet their Iranian counterpart in a push by Oman and Iran to secure buy-in for a temporary deal to manage shipping through the Strait of Hormuz, the Financial Times reported.
Oil prices slipped, but were set to end the week above $100 a barrel. O/R
Traders are now pricing in a 67% chance of a rate hike at the central bank's policy meeting next week, up from 62% before the data, according to the CME FedWatch Tool. The U.S. consumer price inflation report is due at 1230 GMT.
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