NEW YORK: Gold prices rose on Friday despite an uptick in the dollar and US bond yields as some investors still expect the Federal Reserve will slow the pace of rate hikes from early next year.

Spot gold rose 0.5% to $1,798.40 per ounce, as of 1907 GMT. US gold futures settled 0.5% higher at $1,810.70.

“The market seems to be focused on a light at the end of the tunnel, a point at which the Fed is done raising interest rates and based on that we’ve seen general support in gold,” said David Meger, director of metals trading at High Ridge Future.

A 50-basis-point rate hike is widely expected to be delivered by the Fed at its final meeting of 2022 scheduled on Dec. 13-14. Rate hikes to fight soaring inflation raise the opportunity cost of holding zero-yield bullion.