Gold prices were flat on Friday, while market focus switched to next week’s U.S. inflation data that is likely to provide clarity on the Federal Reserve’s monetary policy trajectory.
Spot gold was little changed at $1,862.52 U.S. per ounce, early Friday, after hitting its lowest level since Jan. 6 earlier in the session. For the week, bullion was down 0.1%.
U.S. gold futures fell 0.3% to $1,872.70.
Investors are awaiting the U.S. consumer price data due on Feb. 14.
The dollar inched 0.3% higher against its rivals. A stronger dollar tends to make greenback-priced gold less affordable for buyers holding other currencies.
Although gold is considered a hedge against inflation, higher interest rates tend to increase the opportunity cost of holding the non-yielding asset.