SINGAPORE, Sept 11 Gold clung to small overnight gains near $1,110 an ounce on Friday, but the metal was headed for a third consecutive weekly fall as investors continued to fret over the timing of a looming U.S. interest rate hike.
Spot gold was little changed at $1,111.55 an ounce by 0317 GMT, after gaining 0.5 percent in the previous session.
Earlier in the week, gold had fallen to $1,101.11, the lowest since Aug. 11. It has lost 1 percent for the week.
U.S. gold, also headed for a third weekly dip, was trading at $1,110.90.
“It is hard to get too enthusiastic about gold currently,” said HSBC analyst James Steel. “We are likely to see sideways trading until the FOMC,” he said referring to the U.S. Federal Open Market Committee meeting.
Physical demand, which has provided little support for prices, could pickup if gold drops below $1,100, he said.
Bullion has benefited in recent years from ultra-low rates, which cut the opportunity cost of holding bullion while holding the dollar in check. But expectations that rates will rise soon have pushed the metal down 6 percent this year.
BNP Paribas SA revised its gold price forecast for 2015 on Thursday, citing strength in the U.S. dollar and concerns over the Chinese economy. The bank cut its price forecast by $15 to $1,145 per ounce for the year. Among other precious metals, silver was headed for a weekly gain, while platinum was set for a third weekly dip. Palladium has been the best performer in the group this week, snapping three weeks of losses to rise 3 percent.
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