2023.12.2209:12:00UTC+00Gold Holds Near Three-week High

Gold held near three-week highs on Friday and was on track for a weekly gain amid bets for an early rate cut by the U.S. Federal Reserve.

Spot gold rose 0.4 percent to $2,053.78 per ounce, while U.S. gold futures were up 0.7 percent at $2,065.85.

U.S bond yields and the dollar languished near a multi-month low, helping increase bullion's appeal.

A cautious undertone prevailed in financial markets as investors await the last key U.S. inflation reading before Christmas.

November's personal consumption expenditure index is due later in the day, with analysts expecting a 0.2 percent increase month-on-month.

The Fed's preferred inflation gauge, which will be released along with a report on personal income and spending might offer important clues to the path of future Federal Reserve policy.

U.S. reports on building permits for November, durable goods order for November and the University of Michigan consumer sentiment index for November are also due.