Spot gold slipped on Friday, shrugging off North Korea's latest missile launch over Japan, with strong U.S. inflation data raising the prospect of another interest rate hike by the Federal Reserve.
Early Friday, spot gold was down 0.3% at $1,325.09 U.S. an ounce, putting the shiny yellow metal down in price more than 1% for the week, on track for its first weekly decline in four.
U.S. gold futures for December delivery gained was flat at $1,329.40 U.S.
North Korea fired a missile on Friday that flew over Japan's northern island of Hokkaido far out into the Pacific Ocean, South Korean and Japanese officials said, further ratcheting up tensions after Pyongyang's recent test of a powerful nuclear bomb.
Geopolitical risks can boost demand for safe-haven assets such as gold and the Japanese yen, which slipped against the U.S. dollar on Friday.
Back to the Fed, it has a 2% inflation target, and a series of subdued inflation readings have dampened expectations for further rate rises in the near term. Firming inflation could support the case for another rate hike.
The Fed's next monetary policy meeting is due to begin this coming Tuesday.
Silver was 0.3% lower at $17.70 U.S. an ounce and was set to mark its first weekly decline in four, like its cousins in the gold sector.
Platinum edged down 0.4% to $975.70 U.S. an ounce and was down over 2% for the week, on track for its biggest weekly drop since early May.
Palladium gained 0.2% to $924.70 U.S., after marking a four-week low on Thursday. It was heading for a second weekly decline.
