Dollar heads for first weekly fall in nearly 2 months
Gold set for first weekly gain in three, up 0.4 so far
Houthis claim responsibility for attack on UKowned cargo ship

Feb 23 Reuters Gold prices inched down on Friday, but were on track for their first weekly rise in three as a broadly weaker U.S. dollar and growing tensions in the Middle East lifted bullion39;s appeal.

Spot gold was down 0.2 at 2,020.7 per ounce, as of 0820 GMT, and has gained 0.4 so far in the week. U.S. gold futures edged 0.1 higher to 2,031.6 per ounce.

There39;s a decent amount of physical buying, especially from the central banks, and the fact that the dollar has not really moved is also giving gold an element of support, Marex analyst Edward Meir said.

Also helping on providing some support for gold are the geopolitical uncertainties and tensions.

Tension mounted in the Middle East as Yemen39;s Iranaligned Houthis claimed responsibility for an attack on a UKowned cargo ship, and they targeted Israel39;s port and resort city of Eilat with ballistic missiles and drones.

Meanwhile, the dollar index was heading for its first weekly dip in nearly two months, making the greenbackpriced bullion less expensive to overseas buyers.

However, recent data showing higherthanexpected U.S. consumer and producer prices has dashed hopes for an early interest rate cut from the Federal Reserve and kept bullion39;s gains in check.

Fed policymakers should delay cuts by at least another couple of months to…