Gold edged lower on Friday, as a firmer dollar made bullion more expensive for other currency holders, although a pullback in the U.S. Treasury yields limited losses for the safe-haven metal.
Spot gold was down 0.2% at $1,823.77 U.S. per ounce overnight Friday. Bullion lost 0.4% so far this week.
U.S. gold futures were steady at $1,823.20.
The U.S. dollar index held firm near a one-week high, and was set for a weekly gain against its rivals.
Benchmark U.S. 10-year Treasury yields slipped from a more than one-month high hit on Thursday. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold.
Data on Thursday showed that fewer Americans filed new claims for unemployment benefits last week, while producer prices increased more than expected in April.
Recent economic readings out of the United States have sparked concerns over rising inflation and raised bets over an earlier-than-expected Federal Reserve rate hike.
The U.S. central bank has pledged to keep interest rates low until the economy reaches full employment, and inflation hits 2% and is on track to "moderately" exceed that level for some time.
Gold tends to benefit from lower interest rate environment as it reduces the opportunity cost of holding non-yielding bullion.
Palladium gained 0.7% to $2,883.71 U.S> per ounce, but was on track to post a second straight weekly loss with a drop of about 2%.
Silver was flat at $27.06 U.S. per ounce, while platinum was up 0.6% at $1,212.88 U.S.
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