Oct 9 - Gold rose for a second straight session on Friday, touching a one-week high, as bargain buying emerged after bullion fell to two-month low earlier this week, while traders assessed the likelihood of further US Federal Reserve interest rate hikes.
Spot gold rose 1.5% to $4,194.36 per ounce by 03:29 p.m. EDT , heading for a weekly gain of about 1.3%. The metal fell to a two-month low on Wednesday as a stronger dollar and rising US Treasury yields weighed on the non-yielding metal. [US/] [USD/]
US gold futures for December delivery gained 1.4% to settle at $4,216.3.
Bullion gained due to "bargain hunting at the lows, as a floor has been building in the $4,000-region," said Rhona O'Connell, head of market analysis at Stone X.
"It is arguable that a further Fed hike is already priced in but so is the expectation for continued official sector net purchases. Without any Black Swan event I find it hard to see gold breaking convincingly higher."