Gold headed for a weekly gain as investors prepare for another round of central bank action, with weaker-than-expected U.S. data reinforcing expectations that the Federal Reserve will cut borrowing costs next week.

Bullion is up one per cent this week, trading above US$1,500 an ounce, as attention shifted to the Fed’s Oct. 29-30 gathering, when officials are expected to reduce interest rates by a quarter percentage point. Lower borrowing costs increase the appeal of non-interest bearing precious metals.

Other precious metals also headed for their first synchronized weekly gain in two months.

Bullion has gained about 17 per cent so far this year as top central banks adopt looser monetary policy in efforts to support their economies hurt by trade wars.

While the Fed is expected to reduce borrowing costs for the third time this year, a rate cut is already priced in, so much of gold’s moves may depend on what officials will say about the future rate path.

“At present, gold seems to be talking itself into a vicious circle,” said Rhona O’Connell, head of market analysis for EMEA and Asia at INTL FCStone Inc.. “Unless the Fed really surprises the markets, then I can’t see gold reacting much to that.”

Jeffrey Halley, a senior market analyst at Oanda Corp., sees prices “trapped” for now in a range of US$1,475 to US$1,520.

Spot gold was little changed at US$1,505.12 an ounce on Friday, after reaching the highest since Oct. 10. Prices are on course for a monthly gain.

Silver climbed as much as 1.6 per cent to US$18.0982 an ounce, touching the highest in a month. Platinum gained toward a one-month high, while palladium was little changed.