Gold prices fell on Friday as the dollar remained firm after US inflation data came in line with expectations, suggesting the US Federal Reserve may adopt a cautious stance on additional rate cuts, reports Reuters.
Spot gold fell 1.1 per cent to $2,845.53 an ounce as of 09:05 a.m. ET (1405 GMT). Bullion lost 3.1 per cent for the week, its steepest weekly fall since November.
US gold futures were 1.3 per cent down at $2,857.40.
The dollar index was set for a weekly gain, making dollar-priced gold more expensive for overseas buyers.
The Personal Consumption Expenditures (PCE) price index increased 0.3 per cent in January after advancing by an unrevised 0.3 per cent in December.
"I think that PCE data is not going to move the needle on previous expectations from the Fed," said Jim Wyckoff, a senior market analyst at Kitco Metals.
"I think the main element impacting the gold and silver markets is the profit-taking in week-long liquidation, also the strong U.S. dollar index," Wyckoff said.
Traders of futures contracts that settle to the Federal Reserve's policy rate maintained bets on Friday that the US central bank will resume cuts to short-term borrowing rates in June.
Higher interest rates dampen non-yielding bullion's appeal.
However, safe-haven gold is set for a second consecutive monthly gain, boosted broadly by concerns over US President Donald Trump's tariff plans.
Trump said on Thursday his proposed 25 per cent tariffs on Mexican and Canadian goods will take effect on March 4, with an extra 10 per cent duty on Chinese imports.
Spot silver fell 0.9 per cent to $30.98, platinum lost 1.1 per cent to $938.13 and palladium slipped 1.1 per cent to $909.54. All three metals headed for monthly declines.
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