2018.02.1613:55:00UTC+00Gold Is Back In Style, Settles Above $1350

Gold prices inched higher Friday, extending weekly gains amid expectations the Federal Reserve will raise interest rates only three times this year.

Markets feared the Fed would raise interest rates four times, but a downbeat retail sales report is likely to give policymakers some reason for concern.

April gold added 90 cents, or less than 0.1%, to settle at $1,356.30/oz. It was the best weekly gain since 2016.

Traders considered a report from the University of Michigan showing significant improvement in U.S. consumer sentiment inFebruary.

The preliminary reading on the consumer sentiment index for February came in at 99.9, up from the final January reading of 95.7. Economists had expected the index to edge down to 95.5.

"Consumer sentiment rose in early February to its second highest level since 2004 despite lower and much more volatile stock prices," said Richard Curtin, the survey's chief economist.