· Gold traded little changed on Friday amid pressure from a stronger dollar, but was headed for its biggest monthly fall this year amid rising prospects of a U.S. rate hike in December.
· Spot gold was nearly unchanged at $1,286.96 per ounce as of 0720 GMT, on track to register a 2.5 percent decline in September, its largest monthly fall so far in 2017 and the biggest since November 2016.
However, it was set to end the quarter around 3.7 percent higher.
· U.S. gold futures rose 0.1 percent to $1,289.70 per ounce.
· The U.S. dollar inched higher and was on track for its biggest weekly gain this year as investors pondered the Trump administration's tax plan and the outlook for U.S. Federal Reserve policy.
· "(Gold) will likely continue to struggle in the short term against a backdrop of higher interest rates, particularly in the U.S. and possibly in the U.K. and Europe," said INTL FCStone analyst Edward Meir.
· Meanwhile, palladium gained 0.7 percent to $935.70 per ounce. It was up 11 percent for the quarter and 38 percent so far in 2017.
- Platinum rose 0.5 percent to $924 per ounce. The metal is set for a 7.1 percent drop for September, its worst performing month since March.
- Palladium traded at a premium to platinum for a third straight day after prices for the two metals hit parity for the first time since 2001 on Wednesday.
"Palladium is short-supplied and also there's very good demand from auto sectors. As long as this situation continues, we'll see a premium in palladium ," said Ikemizu.
"If it goes on for a long time, car makers will have to switch from palladium to platinum, which was unthinkable in the past ... (However,) This current reversal probably won't be long enough for car makers to decide on substitution."
Both metals are primarily consumed by automakers for catalytic converters, but platinum is more heavily used in diesel vehicles that have fallen out of favour.
· Meanwhile, silver edged 0.1 percent higher to $16.84 per ounce and was on track for a 4 percent loss on month, but was set to end the quarter 1.7 percent higher.
Reference: Reuters
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