Prices for gold slipped on Friday and was on track for a weekly fall, as a stronger U.S. dollar and prospects of more steep rate hikes from the Federal Reserve dented demand for the non-yielding bullion.
Spot gold was down 0.8% to $1,652.90 U.S. per ounce. Prices have fallen more than 2% so far this week. U.S. gold futures slipped 1.1% to $1,659.
The U.S. dollar rose 0.3% against its rivals, making bullion more expensive for overseas buyers.
Data on Thursday showed U.S. consumer prices increased more-than-expected in September, providing ammunition to the Fed to deliver another big rate hike.
Gold is highly sensitive to rising U.S. rates, as these increase the opportunity cost of holding bullion, which pays no interest. It shed as much as 1.8% on Thursday, before recovering to end the session 0.4% lower, as the dollar lost ground after initially spiking following the inflation report.
