Gold to face first weekly loss

Singapore

Gold held steady on Friday amid lower trading activity because of Asian holidays but was set for its first weekly loss in three as investors were choosing more riskier assets such as equities rather than holding value in the yellow metal.

Equity markets were higher after weak U.S. data reduced the already low chance of an interest rate increase when the Federal Reserve meets next week.

However, a new Reuters poll of 100 economists showed a median 70 percent chance of an increase in December.

Gold is highly sensitive to rising interest rates, which would lift the opportunity cost of holding non-yielding assets.

"We are expecting prices to be volatile especially with the Fed meeting next week.

Investors will be analysing every single bit of data that is coming out," said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central.