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Gold held flat on Friday, as higher U.S. Treasury yields blunted the lift from a weaker dollar, with investors awaiting key inflation data for signals on the Federal Reserve's path ahead of next week's meeting.

Spot gold was steady at $4,208.46 per ounce as of 0358 GMT and is on track for a 0.5% weekly decline.

U.S. gold futures for December delivery lost 0.1% to $4,237.70 per ounce.

Benchmark 10-year U.S. Treasury yields hovered near their highest level in more than two weeks, while the dollar languished not far from a five-week low against its major peers, making gold more attractive to overseas buyers. [US/][USD/]

"So the market is waiting for fresh triggers which can come in the form of what the Fed is going to do and (gold) is just consolidating after a brief run in the month of November, but the  trend going forward looks to be on the upside," said Kunal Shah, head of research, Nirmal Bang Commodities.

Shah added that higher Treasury yields were also playing their part in pressuring gold prices.

U.S. data on Thursday showed jobless claims fell to 191,000 last week, the lowest in more than three years and well under the 220,000 forecast. On Wednesday, ADP figures revealed private payrolls fell by 32,000 in November, the sharpest drop in over two and a half years.

A majority of more than 100 economists polled by Reuters forecast the Fed will reduce its key interest rate by 25 basis points at its December 9-10 meeting, as the central bank seeks to support a cooling labor market.

Lower interest rates tend to favour non-yielding assets such as gold.

Investors are waiting on the delayed September Personal Consumption Expenditures (PCE) Index, the Fed's preferred inflation gauge, due at 1500 GMT.

Silver rose 0.5% to $57.40 per ounce, after Wednesday's record high of $58.98, and was on track for a weekly gain.

Platinum slipped 0.4% to $1,640.25 and was also set for a weekly loss, while palladium gained 0.9% to $1,461.67 but was poised to end the week higher.UStre