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Update: Gold Rising Off a Near Seven-Month Low as the US Dollar Weakens

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(Updates prices in the second and final paragraphs.)

Gold was mostly steady midafternoon on Friday, rising off multi-month lows as the U.S. dollar fell off a seven-month high.

Gold for August delivery was last seen up 1.3% to US$4,098.00 per ounce.

The price of the precious metal is up from the lowest since early November a day earlier after a Thursday report showed U.S. inflation rose again last month, with the May personal consumption expenditures index, the Federal Reserve's preferred inflation measure, showing prices rose at a 4.1% annualized pace, up from 3.8% in April.

Rising prices due to high energy costs are lifting expectations for higher US interest rates, boosting the dollar, as the Federal Reserve's policy committee left rates unchanged last week but warned a hike may come later this year.

"Gold is trading around USD 4,000 for a third consecutive session and is heading for a fourth weekly loss, with investor sentiment still shaken by the recent selloff as markets adjust to the twin headwinds of a hawkish Fed and a stronger dollar," Saxo Bank said in a note.

The dollar eased off the highest since early November, with the ICE dollar index down 0.1 points to 101.33. Treasuries fell, with the yield on the U.S. two-year note down 3.5 basis points to 4.1%, while the 10-year note was paying 4.396% down 1.5 points.

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