Gold prices enjoyed slight gains on Friday after a heavy selloff ?in the previous session, ?but appeared headed ?for a weekly decline as investors awaited key U.S. inflation figures that could shape expectations for further Federal Reserve rate increases.
Spot gold rose 0.7% to $3,903.19 U.S. per ounce after losing nearly 4% so far this ?week. U.S. gold futures for December delivery gained 0.6% to $3,907.50 per ounce.
Gold was moving higher after a big slip on Thursday, as prices had been pushed into oversold territory. The metal is undervalued ?currently, and experts say gold prices have a good support level at around the $3,850 mark.
Gold prices slid ?3% on Thursday, hitting a more-than-one-year low, as oil prices climbed on fading hopes for peace in the Middle East, spurring fears of higher inflation and elevated interest rates.
Markets see an 89% chance of a ?25-basis-point U.S. rate hike in December, while the probability of a larger 50-basis-point move is priced ?at 11%.
Although gold ?is seen as an inflation hedge, higher interest rates tend to diminish its appeal as bullion pays no interest.
