2023.11.2409:18:00UTC+00Gold Set For Second Weekly Gain On Dollar Weakness

Gold prices edged higher on Friday and were on track for their second consecutive weekly gain, drawing support from a weaker dollar.

The upside remained limited as bond yields rose on expectations that interest rates will remain elevated for longer.

Spot gold edged up 0.1 percent to $1,994.94 per ounce, while U.S. gold futures were up 0.2 percent at $1,995.70.

While the dollar lost ground against major rivals, global bond yields ticked higher despite weak business activity readings from Japan and the euro zone.

U.S. PMI data due out later in the day may provide important clues on the health of the U.S. economy in the fourth quarter of the year.

The euro strengthened and regional bond yields edged higher after Bundesbank President Joachim Nagel said the European Central Bank must resist any temptation to cut interest rates early.

Nagel also said he was "skeptical" about the risk of a 'hard landing' for the euro zone economy caused by the monetary policy squeeze.

Elsewhere, Bank of England's chief economist Huw Pill told the Financial Times that it was too early to declare victory in the battle against high inflation.