Gold was set to close out 2016 up more than 9 percent for its first annual gain in four years, edging higher in the final trading session of the year on Friday on the back of a weaker dollar.

Spot gold was up 0.2 percent at $1,160.42 an ounce by 0639 GMT, having earlier hit a more than two-week high of $1,163.14 an ounce. Gold is up about 2.5 percent for the week and poised to register its best weekly gain since early June.

“The dollar is retreating and that gave some support to gold, amid some light buying in a thin market,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong, adding that the focus will now be on the impact of US President-elect Donald Trump’s policies.

Gold has gained more than 9 percent so far this year despite a steep fall in November, following three successive years of losses. “Gold made robust gains as demand surged during the periods of economic and political uncertainty until the third quarter,” said Mihir Kapadia, CEO of London-based Sun Global Investments.

However, the safe haven asset is down nearly one percent in December, and about 12 percent this quarter. “The decline experienced by the metal during December is largely due to the market tide favouring the US economy which hopes for infrastructure and spending boost under a Trump administration, which has cemented expectations of higher interest rates and higher stock prices in 2017,” Kapadia said.

US gold futures rose 0.3 percent to $1,161.30 per ounce. “Some of the previous headwinds that have pushed gold lower are now fading; among bearish items now no longer on the list include a stronger dollar, rising US rates and buoyant equity markets,” INTL FCStone analyst Edward Meir said in a note.

The market could witness a countercyclical bounce that may carry on for a few more sessions, Meir added. 

The dollar index, which measures the greenback against a basket of currencies, fell 0.3 percent to 102.330. Other precious metals were also set to end the year in positive territory. Silver was up 0.3 percent at $16.19, on track to end the year up about 17 percent.

Platinum gained 0.4 percent to $901, heading for yearly rise of just over over one percent, its first annual gain in four years. Palladium edged 0.2 percent lower to $670.40.