The price of gold rose on Friday, helped by a slight fall in the US dollar and growing geopolitical tensions, but it stayed on track for a weekly decline as markets awaited key U.S. data to learn more about the direction of monetary policy from the Federal Reserve

Spot gold rose 0.7% to $2,660.03 per ounce at 0236 GMT. However, bullion is down 2% since the start of the week. American gold futures gained 0.8% to $2,659.70. The dollar index fell by 0.2, increasing the attractiveness of gold for holders of other currencies. [USD/]

Escalating geopolitical tensions are encouraging investors to turn to gold in the hope of capitalizing on potential price increases, said Brian Lan, managing director of Singapore-based broker GoldSilver Central, said, adding that “the slight weakening of the dollar has helped gold prices rise.”

The Israeli military said its air force hit a facility used by Hezbollah to store medium-range rockets in southern Lebanon on Thursday, as the two sides accuse each other of violating the ceasefire.

In addition, Russia launched its second major attack on Ukraine's energy infrastructure this month on Thursday, causing major power cuts across the country.

Bullion has traditionally been considered a safe investment in times of economic and geopolitical uncertainty, such as conventional or trade wars.

Gold prices could test or plunge below the key $2,600 level, with the metal likely remaining in a consolidation phase through December, Lan added.

Markets estimate that 66.5% is likely to cut rates by 25 basis points by the Federal Reserve in December, according to the CME's Fedwatch tool, which could mark the third cut in 2024.

Key U.S. data released next week, including job openings, the ADP employment report, and the employment report, should provide some insight into the prospects for reducing Fed rates.

Spot silver rose 1.1% to $30.58 per ounce, platinum gained 0.9% to $939.75, and palladium rose 0.9% to $984.25 per ounce, and palladium rose 0.9% to $984.25. All three metals were ready for weekly declines