By Arpan Varghese
(Reuters) - Gold prices rose on Friday to remain on track for their fourth weekly gain in a row, buoyed by a weaker dollar ahead of the inauguration of U.S. President-elect Donald Trump later in the day.
Spot gold was up 0.3 percent at $1,207.80 per ounce by 0315 GMT, while U.S. gold futures climbed 0.5 percent to $1,207.50 per ounce.
"There is a bit of safe-haven buying ahead of Trump's inauguration," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
Trump's protectionist statements, with mixed promises of tax cuts and infrastructure spending, have increased demand for gold as a safe-haven.
The metal has risen more than 7 percent since dropping to its lowest in more than 10-1/2 months in December.
Spot gold may approach resistance at $1,219 per ounce again as it failed to break support at $1,196, according to Reuters technical analyst Wang Tao.
Better-than-expected jobs and housing data reinforced the view that the U.S. economy is sufficiently robust to warrant rate rises, turning back recent falls for the dollar and pushing 10-year bond yields to their highest since Jan. 3.
A strong dollar makes gold more expensive for holders of other currencies.
The dollar index, which measures the greenback against a basket of currencies, fell 0.2 percent to 100.970.
However, U.S. Federal Reserve Chair Janet Yellen took a less hawkish stance on Thursday, suggesting the U.S. central bank raise interest rates, albeit slowly, so as to not risk harm to the recovery the Fed has sought to nurture.
"The Fed is definitely going to raise rates this year, but we are not sure whether it will happen in the first half of the year. And, we have several events like the U.S. debt ceiling and Brexit around the same time," Leung said.
Gold is highly-sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
In other precious metals, silver was 0.18-percent higher at $17.03 an ounce.
Platinum prices were firm at $958 an ounce. The metal hit a low of $943.75 in the previous session, its worst since Jan. 5.
Palladium also remained steady at $753 an ounce.
(Reporting By Nallur Sethuraman in Bengaluru; Editing by Sonali Paul and Joseph Radford)
Disclaimer: No Business Standard Journalist was involved in creation of this content
