Gold prices rose on Friday and were set for a weekly increase, lifted by a weaker dollar as investors awaited U.S. economic data to assess the chances of a December rate cut after hawkish signals from Federal Reserve officials.

Spot gold gained 0.7% to $4,201.70 per ounce by 0452 GMT, up about 5% for the week. U.S. gold futures added 0.3% to $4,204.90.

The dollar index was on track for a second weekly drop, enhancing gold’s appeal. “Gold has benefited from the weaker dollar and speculative flows expecting the Fed to cut rates,” said Brian Lan of GoldSilver Central. “But with the U.S. government reopened and renewed concerns over inflation and growth, expectations for aggressive cuts have eased.”

Fed officials continue to signal caution after two rate cuts this year, with Chair Jerome Powell stressing the need for more data. Markets now price a 51% chance of a December cut, down from 64% a day earlier, according to FedWatch.

Gold typically strengthens during low-rate environments and economic uncertainty. The U.S. government reopened after a record 43-day shutdown that had disrupted data releases.

Among other metals, silver jumped 1.3% to $53 and was set for its best week since September 2024, up 9.7%. Platinum rose 1% to $1,596.10, while palladium gained 1.4% to $1,446.31.