Gold prices slightly rise due to a weaker US dollar, but may still post weekly losses.

1. Gold prices edged up slightly on Friday, with spot gold rising as much as 0.45% to $4,188.15 per ounce, a new high in nearly three trading days, supported by a softer dollar. However, investors are still weighing signals from the Federal Reserve on interest rates, and gold prices may post a slight loss this week. 2. Analysts noted that gold has hovered within the $4,221 range and had touched the lower limit of $4,075 earlier this week. They pointed out that U.S. inflation momentum remains strong, with both core CPI and core PPI for September exceeding expectations. The dollar is facing its first weekly drop in five weeks, making dollar-denominated gold cheaper for overseas buyers. 3. U.S. producer prices in September posted their largest gain in four and a half years, as the costs of goods and services climbed further, signaling inflation pressures are spreading from energy products to a broader range of sectors. Earlier, the CPI report showed that surging gasoline prices accelerated September’s consumer price growth. CME FedWatch Tool shows traders currently see a 13% probability of an interest rate hike by the Federal Reserve later this month, and an 89% probability in December. 4. Federal Reserve Chair Waller expressed optimism on Friday about the resilience shown by the U.S. economy, while also saying he was surprised at the resilience of the global economy in the face of recent geopolitical shocks. Despite central banks tightening policies to contain inflation, the global economy has “maintained its momentum.” Chicago Fed President Goolsbee said on Thursday that both consumer and producer price inflation came in above expectations this week, describing it as “disappointing.”