Sept 11 (Reuters) - Gold prices rose on Friday, but were headed for a weekly loss, as oil slipped from multi-month highs and assuaged some inflationary concerns, as investors awaited key U.S. economic data for clues on the Federal Reserve's monetary policy path.
Spot gold rose 0.6% to $4,339.46 per ounce by 1105 GMT. It was down nearly 3% for the week so far.
Prices fell on Thursday after the U.S. Producer Price Index data showed prices increased in line with expectations in August amid a rebound in the cost of energy products.
U.S. gold futures dropped 0.6% to $4,381.30.
Gulf foreign ministers plan to meet their Iranian counterpart in a push by Oman and Iran to secure buy-in for a temporary deal to manage shipping through the Strait of Hormuz, the Financial Times reported.
The precious metal is benefiting from "softer oil prices on hopes a Monday meeting between GCC ministers and Iran can yield some results regarding the passage of oil through the Strait," said Ole Hansen, head of commodity strategy at Saxo Bank. "In addition, buyers once again emerged ahead of a key support area around $4,300," said Hansen.
Oil prices were set to end the week above $100 a barrel.
Higher oil prices stoke inflation fears and bolster expectations of the Fed raising interest rates. While gold is typically seen as an inflation hedge, higher interest rates diminish the appeal of non-yielding bullion.
Traders are now pricing in a 67% chance of a rate hike at the central bank's policy meeting next week, up from 62% before the data, according to the CME FedWatch Tool. The U.S. consumer price inflation report is due at 1230 GMT.
Elsewhere, gold demand in India was subdued this week as volatile prices discouraged buyers, while investment demand remained strong in top consumer China.
Among other metals, spot silver rose 0.4% to $63.80 per ounce, but was down 3% for the week.
Platinum climbed 0.9% to $1,792.07 and palladium gained 2.4% to $1,312.90. However, both metals were on track for a weekly loss.
Reporting by Sukanya Mitra in Bengaluru; Editing by Jochelle Mendonca and Harikrishnan Nair
