Gold prices were flat on Friday, but on track for their best week since mid-November as the dollar weakened after the U.S. Federal Reserve decided to withdraw its pandemic-era stimulus, making bullion cheaper for holders of other currencies.
Spot gold was flat at $1,797.47 per ounce, as of 0042 GMT. U.S. gold futures edged up 0.1% to $1,799.80.
The precious metal was set for its first weekly gain in five, up 0.8%.
The dollar index hit a one-week low in the previous session, lifting the appeal of the greenback-priced metal.
The Bank of Japan is set to keep monetary policy ultra-loose on Friday but may dial back emergency pandemic-funding.
Britain became the first G7 economy to hike interest rates since the onset of the pandemic on Thursday, with the U.S. Fed also signaling plans to tighten in 2022 but the European Central Bank only slightly reining in stimulus.
In the United States, supporting the case for higher interest rates, data on Thursday showed U.S. weekly jobless claims remained at levels consistent with tightening labor market conditions.
The Fed’s decision to accelerate reduction of bond purchases is “a well-calibrated” response to rising wage and price pressures but increases risks for emerging markets, IMF spokesman Gerry Rice said on Thursday.
Spot silver dipped 0.1% to $22.43 an ounce, but was on track for its first weekly gain since the week ended Nov. 12.
Platinum was up 0.1% to $937.37 and palladium gained 1.1% to $1,749.31.