Gold prices firm as dollar rally cools

Gold firmed on Friday buoyed by a slight retreat in the dollar, while investors hunkered down for more economic data next week to gauge the Federal Reserve's interest rate hike plans, reports Reuters.

Spot gold inched 0.3 per cent higher at $1,925.19 per ounce by 09:53 a.m. EDT (1353 GMT). US gold futures rose 0.4 per cent to $1,949.30.

The dollar, however, is bound for its longest weekly winning streak since 2014, propelled by recent strong U.S. economic data. The greenback's overall strength put bullion on course for its first weekly dip in three.

Focus is now on US inflation readings due on Sept. 13, and the Fed's policy decision on Sept. 20.

While there's still significant investment in the dollar and Treasuries, there's also plenty of safe-haven buying in gold and that's supporting prices, said George Milling-Stanley, chief gold strategist at State Street Global Advisors.

In physical gold markets, top consumer China's economic support measures drove some demand optimism.

Silver rose 0.2 per cent to $22.98 per ounce, while platinum dropped 0.7 per cent to $896.84. Both are headed for their biggest weekly falls since June 23.

Palladium fell 0.5 per cent to $1,205.59.