<p>Gold prices edged higher on Friday and were set for a second weekly gain, as safe-haven demand and lower US bond yields lifted the metal's appeal, while investors look forward to a Federal Reserve meeting for clues to its tightening timeline.</p>.<p>Spot gold was up 0.1% at $1,840.59 per ounce, as of 0414 GMT, inching towards Thursday's two-month high of $1,847.72. US gold futures dipped 0.1% at $1,840.80.</p>.<p>Benchmark US 10-year Treasury yields fell, reducing the opportunity cost of holding non-yielding bullion.</p>.<p>Gold managed to hold its ground even as the US Fed became more hawkish, and that's probably because real rates are negative, DailyFX currency strategist Ilya Spivak said.</p>.<p>All eyes are now on the Federal Open Market Committee meeting scheduled on January 25-26 for any updates on the Fed's plans for rate hikes amid broadening inflationary risks.</p>.<p>Although gold is usually perceived as an inflationary hedge, it is highly sensitive to rising US interest rates, which reduce the appeal of holding non-interest-bearing bullion.</p>.<p>Gold has gained about 1.3% so far this week and is poised for a second weekly rise this month.</p>.<p>A little bit of rumbling to the upside in gold could be an initial knee-jerk appreciation that risk is actually tilted toward a dovish surprise, even if the Fed doesn't do anything different, just because of where the market's state of mind is, Spivak said.</p>.<p>Spot silver was flat at $24.42 an ounce, but is set for its best week in a year, having risen 6.4% so far. Palladium fell 0.8% to $2,042.34, but was poised for a weekly gain of about 8.6%.</p>.<p>Spot platinum dropped 0.8% to $1,031.45.</p>
<p>Gold prices edged higher on Friday and were set for a second weekly gain, as safe-haven demand and lower US bond yields lifted the metal's appeal, while investors look forward to a Federal Reserve meeting for clues to its tightening timeline.</p>.<p>Spot gold was up 0.1% at $1,840.59 per ounce, as of 0414 GMT, inching towards Thursday's two-month high of $1,847.72. US gold futures dipped 0.1% at $1,840.80.</p>.<p>Benchmark US 10-year Treasury yields fell, reducing the opportunity cost of holding non-yielding bullion.</p>.<p>Gold managed to hold its ground even as the US Fed became more hawkish, and that's probably because real rates are negative, DailyFX currency strategist Ilya Spivak said.</p>.<p>All eyes are now on the Federal Open Market Committee meeting scheduled on January 25-26 for any updates on the Fed's plans for rate hikes amid broadening inflationary risks.</p>.<p>Although gold is usually perceived as an inflationary hedge, it is highly sensitive to rising US interest rates, which reduce the appeal of holding non-interest-bearing bullion.</p>.<p>Gold has gained about 1.3% so far this week and is poised for a second weekly rise this month.</p>.<p>A little bit of rumbling to the upside in gold could be an initial knee-jerk appreciation that risk is actually tilted toward a dovish surprise, even if the Fed doesn't do anything different, just because of where the market's state of mind is, Spivak said.</p>.<p>Spot silver was flat at $24.42 an ounce, but is set for its best week in a year, having risen 6.4% so far. Palladium fell 0.8% to $2,042.34, but was poised for a weekly gain of about 8.6%.</p>.<p>Spot platinum dropped 0.8% to $1,031.45.</p>