Gold prices ticked higher on Friday, bolstered by a softer U.S. dollar, while investors assessed the trajectory of Federal Reserve interest rates. 

By 09:44 ET (13:44 GMT), spot gold had risen by 0.2% to $4,177.54 an ounce and gold futures had gained 0.6% to $4,196.47 an ounce.

The U.S. dollar index, which tracks the greenback against a basket of global currencies, was last down by 0.3% at 101.75 and was on track for its first weekly decline in five weeks.

A weaker dollar can support gold by making bullion less expensive for overseas buyers.

 Oil prices fell on Friday, but stayed on pace for a weekly gain, as concerns swirled around Middle East supply flows and a bigger-than-expected draw from U.S. inventories.

Benchmark Brent oil futures slid by 0.1% to $105.78 a barrel by 09:32 ET (13:32 GMT), while U.S. West Texas Intermediate crude futures were mostly unchanged at $97.98 a barrel.

For the week, Brent was last trading up 1.0%. WTI futures were set to add 6.6% this week, after having rallied sharply on Thursday following data showing a deep drawdown in U.S. oil inventories last week. 

The Canadian dollar was on track to snap a five-week losing streak against its U.S. counterpart on Friday, supported by a retreat in the greenback and firmer oil prices, as investors reassessed the outlook for U.S. interest rates.

The loonie traded at around C$1.4170 per U.S. dollar, equivalent to 70.57 U.S. cents, in the latest available market data around the morning session. The U.S. dollar was down about 0.13% against the Canadian currency on the day.

The U.S. dollar’s retreat has helped the Canadian currency recover after domestic employment data last week weakened expectations for a Bank of Canada rate increase and pushed the loonie to an 18-month low.

Oil prices were volatile on Wednesday, as ships were once again targeted in the Strait of Hormuz and renewed fighting between Saudi Arabia and Yemen’s Houthis spurred more concerns over supply disruptions in the Middle East. 

Brent oil futures dipped 0.2% to $105.50 a barrel by 09:11 ET (13:11 GMT), retreating from earlier gains. U.S. West Texas Intermediate crude futures rose 1.4% to $95.43 per barrel. 

Shipping through the Strait of Hormuz also remained constrained after reports this week said more ships have been hit by missiles while attempting to cross the waterway. The United Kingdom Maritime Trade Operations authority said at least two ships were struck in Hormuz on Tuesday.