While the dollar and bond yields fell ahead of key US inflation data that could provide more clarity on the Federal Reserve's interest rate trajectory next year, the price of gold hit its highest level since nearly three weeks this Friday.

Gold hit its highest level since Dec. 4 earlier in the session and is ready for a 1.8% weekly rise, the second in a row. Spot gold was up 0.5% at $2,054.50 per ounce at 1103 GMT and US gold futures rose 0.8% to $2,067.40 per ounce. According to Craig Erlam, senior market analyst at OAND, “If the markets expect as many rate cuts and the dollar and the yields are lower, then gold is going to do very well

Silver gained 0.3% to $24.4727 per ounce. Platinum rose by 0.8% to $970.29 and palladium by 0.6% to $1,220.78. These three metals are in the process of experiencing their second consecutive week of increase.