Gold rose on Friday as the dollar weakened and expectations of U.S. interest rate hikes eased slightly following inflation data, though prices were still on track for a fourth consecutive weekly decline. Spot gold was up 1.3% at $4,077.64 per ounce by 1:35 p.m. EDT (1735 GMT). U.S. gold futures for August delivery settled 1.2% ‌higher at $4,096.30 ⁠per ounce. The ⁠U.S. dollar eased from recent highs after the release of the Fed's preferred inflation gauge on Thursday. [USD/] The U.S. Personal Consumption Expenditures Price Index surged 4.1% in the 12 months through May, matching economists' forecasts in a Reuters poll. Traders are pricing in about a 59% chance of a U.S. rate hike in September, lower than an ⁠earlier expectation ‌of 64%, according to CME Group's FedWatch Tool. Gold is seeing a modest rebound after coming under selling pressure earlier ⁠this week, said Jim Wyckoff, a market analyst at American Gold Exchange. Higher interest rates and tighter monetary policy reduce the appeal of non-yielding bullion, as they tend to boost bond yields and increase returns on interest-bearing assets. Spot gold hit more than a seven-month low earlier this week and prices were down 2.1% for the week. TD Securities said in a note ‌that given gold's inverse relationship with both higher oil prices and a stronger U.S. dollar, sustained strength in energy markets could put further downward ⁠pressure on the precious metal in the months ahead. [O/R] Gold started trading at a premium in India this week for the first time in a month and a half, as a price correction lifted buying, while demand stayed subdued in China, the top consumer. [GOL/AS] Among other precious metals, spot silver rose 2.2% to $59.12 per ounce. Platinum gained 2% to $1,632.80 and palladium jumped 2.5% to $1,213.87. All three were headed for weekly declines.