Gold hits one-week high as inflation fears ease, ounce at 4186.04 dollars

Gold prices rose to a one-week high on Friday as concerns over inflation eased and US Treasury yields came under pressure due to falling oil prices. Investors are also weighing the possibility that the US Federal Reserve may raise interest rates again.

According to Reuters, spot gold climbed 1.3 percent to 4186.04 dollars per ounce and is on track for weekly gains, after hitting a two-month low on Wednesday amid a stronger dollar and higher US Treasury yields. US gold futures for December delivery also rose 1.3 percent to 4211.20 dollars per ounce.

Meanwhile, oil prices fell as supply concerns from the Middle East eased somewhat after US President Donald Trump said the United States would not launch an attack on Iran before the congressional midterm elections scheduled for November.

According to CME Group's FedWatch tool, traders see a 19 percent chance of a US interest rate hike in October, and an 84 percent chance of at least a 25 basis point increase in December.

Among other precious metals, spot silver rose three percent to 61.10 dollars per ounce. Platinum gained 3.6 percent to 1692.85 dollars, while palladium increased 2.5 percent to 1151.08 dollars. Both metals are heading for weekly losses.