15.12.201713:43:00UTC+00Gold Holds Weekly Gains

Gold futures were flat in quiet trading Friday, preserving weekly gains amid expectations the Federal Reserve will relent from further rate hikes early next year.

Gold bounced mid-week when the Fed maintained its projection for only three modest rate hikes in 2018.

Inflation remains stubbornly weak despite significant jobs growth and a generally positive economy.

Feb. gold was up 40 cents for the day, settling at $1,257.50/oz. Gold was up up 0.7% for the week, improving from a 5-month low.

The Federal Reserve Bank of New York released a report showing growth in New York manufacturing activity slowed by more than anticipated in the month of December.

Meanwhile, a separate report released by the Federal Reserve showed a smaller than expected increase in industrial production in the month of November.

The Fed said industrial production edged up by 0.2 percent in November after jumping by an upwardly revised 1.2 percent in October.