Gold falters as U.S. dollar extends gains

Gold prices were muted on Friday, stuck in a tight trading range, as the American dollar extended rally from the previous session when strong U.S. inflation data and trade war concerns boosted demand for the greenback.

Spot gold was down 0.1 percent at $1,245.54 U.S. an ounce, as of early Friday. For the week, the metal was down 0.7%

U.S. gold futures for August delivery slipped 0.1% to $1,245.50 U.S. an ounce.

The dollar was buoyant near a 10-day peak versus a basket of currencies on Friday, supported by Treasury yields that edged higher on expectations the U.S. inflation rate will rise.

A stronger U.S. currency and higher rates reduce demand for non-interest bearing gold as the metal becomes more expensive for holders of other currencies.

In other precious metals, silver fell 0.1% to $15.88 U.S. an ounce, after hitting a seven-month low in the previous session.

Platinum lost 0.6% to $833.70 U.S. an ounce, while palladium was 0.7% lower at $942.78 U.S.

All three metals were headed for weekly declines.