Gold inched higher on Friday, with prices tallying their first weekly gain in a month amid expectations the Federal Reserve will maintain a slower pace of interest rate hikes next year.

Gold futures for February delivery tacked on 80 cents, or around 0.1%, to settle at $1,257.90 on the Comex division of the New York Mercantile Exchange.

For the week, the precious metal gained about 0.7%, snapping a three-week losing streak.

The Fed raised interest rates for a third time this year on Wednesday, as widely expected, and indicated that it would stay on a similar path next year, disappointing some who had speculated the U.S. central bank could raise its interest rate projection for next year to four rate hikes.

The central bank also said it expected inflation to remain below its target for another year, tempering expectations for an accelerated pace of rate hikes.

Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

Meanwhile, growing investor optimism surrounding U.S. tax reform limited gains, following reports that Republicans secured enough votes for the bill passage. The House was expected to vote on the bill on Tuesday.

Some investors expect that the tax overhaul may boost U.S. growth, leading to more interest rate hikes and a higher dollar.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 93.96 late Friday, off an earlier low of 93.28.