Gold prices rose on Friday as mounting expectations of a US Federal Reserve rate cut next week buoyed sentiment, while silver soared to a record high.

Spot gold was up 1 percent to $4,212.16 per ounce at 1:36 p.m. ET (1836 GMT), but was on track for a 0.4 percent weekly loss.

US gold futures for February delivery settled unchanged at $4,243 per ounce.

"The market is increasingly confident that the central bank is going to cut (rates) and in response to that, we've seen the US dollar weaken a little bit and that's accretive for gold," said Bart Melek, global head of commodity strategy at TD Securities.

US economic data showed the core Personal Consumption Expenditures (PCE) Price Index rose 0.3 percent in September, with the annual increase slowing to 2.8 percent from 2.9 percent in August.

This followed private payroll data revealing the sharpest decline in over two-and-a-half years last month. Dovish commentary from several Fed officials has further fueled expectations of monetary easing.

CME's FedWatch tool indicates an 87.2 percent probability of a 25-basis-point rate cut at the Fed's December 9-10 meeting.

Gold is projected to trade between $4,200 and $4,500 this year, and between $4,500 and $5,000 next year, depending on the Fed's decisions, said Alex Ebkarian, COO at Allegiance Gold.

Meanwhile, physical gold demand in India and China eased this week as buyers wait for a correction in spot prices.

Silver rose 2.6 percent to $58.59 an ounce, up 4 percent for the week, after touching a record $59.32 earlier.

"(Silver is) following the pathway of gold and many investors still believe that silver is quite cheap in relative terms," Melek said, citing structural deficits and rising demand for electrification as supportive factors.

The white metal has rallied 98 percent so far this year, fueled by supply deficits and its designation on the US critical minerals list.