Gold prices were little changed on Friday, but the metal was headed for a second straight weekly drop as a stronger dollar and U.S. Federal Reserve’s hawkish policy stance clouded outlook for the non-yielding bullion.

FUNDAMENTALS

* Spot gold rose 0.1% at $1,631.33 per ounce, as of 0043 GMT, but it was down 0.6% for the week so far.

* U.S. gold futures rose 0.2% to $1,633.70.

* The dollar index was set for its biggest weekly gain since Sept. 23.

* On Wednesday, the Fed raised interest rates by 75 basis points and Chair Jerome Powell vowed to “keep at” their battle to beat down inflation.

* Gold is considered an inflation hedge, but rising interest rates dent the non-yielding asset’s appeal.

* Investors’ focus now shifts to the U.S. non-farm payrolls data for October due at 1230 GMT, which could offer further cues on the Fed’s rate-hike plan.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.82 percent to 911.59 tonnes on Thursday from 919.12 tonnes on Wednesday.

* Meanwhile, the Bank of England raised interest rates by the most since 1989 on Thursday but warned investors that the risk of Britain’s longest recession in at least a century means borrowing costs are likely to rise less than they expect.

* Spot silver was flat at $19.46, platinum fell 0.1% to $917.84 and palladium was steady at $1