Gold is heading for its best weekly performance in four weeks

Gold prices rose on Friday after yesterday's declines and are on track for weekly gains supported by a weaker dollar, as investors await more U.S. economic data for December to assess the likelihood of an interest rate cut after hawkish comments from Federal Reserve officials.

Gold prices are now trading near $4,180 per ounce, with the US dollar index (DXY) heading for a second consecutive week of declines against its rivals, increasing gold's appeal to holders of other currencies, as well as uncertainty over the accumulation of official data after the US government reopens.

Amid concerns about inflation and signs of relative stability in the labor market after two rate cuts this year, a growing number of Fed policymakers are expressing reservations about further monetary easing.

Traders currently estimate the likelihood of a quarter percentage point rate cut next month at 51%, down from 64% in the previous session, according to the FedWatch tool.