Gold on track for third weekly loss as US inflation data looms

Among other metals, spot silver XAG= fell 0.3% to $63.39 and has lost more than 4% for the week. Platinum XPT= eased 0.2% at $1,773.93 while palladium XPD= lost 0.3% to $1,278.51, with both metals headed for weekly declines.

Sept. 11 (Reuters) - Gold prices edged higher on Friday but were headed for a third consecutive weekly fall as expectations of a U.S. rate hike strengthened, while traders awaited U.S. consumer price index data for further clues on the Federal Reserve's policy path.

Spot gold XAU= was up 0.2% at $4,324.79 per ounce, by 0020 GMT, but down more than 2% for the week so far. U.S. gold futures GCcv1 for December delivery were down 1% at $4,364.70.

The U.S. inflation report is due at 1230 GMT.

Data on Thursday showed that Producer Price Index for final demand rose 0.4% in August after an upwardly revised 0.1% gain in July. Following which, traders nudged up bets that the Fed will raise interest rates at its meeting next week and spot gold subsequently fell nearly 2%.

"A stronger-than-expected reading would reinforce the case for several interest rate increases, potentially pushing Treasury yields and the dollar higher and placing additional pressure on gold," said Wael Makarem, financial markets strategists lead, Exness.

"Ongoing Middle East tensions could continue to weigh on gold through higher inflation expectations."

Despite gold being known as an inflation hedge, rising interest rates often pressure the metal, which offers no yield.

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