Gold prices declined on Friday amid renewed worries about aggressive policy tightening by major central banks.
Spot gold fell 0.8 percent to $1,792.38 per ounce, while U.S. gold futures were down 0.8 percent at $1,792.15.
Overnight data showed that U.S. core personal consumption expenditure prices, excluding food and energy, rose an annual 4.7 percent in May, slightly less than expected.
However, headline inflation remained high, rising 0.6 percent for the month, much faster than the 0.2 percent gain in April.
Earlier this week, Fed Chair Jerome Powell reiterated that combatting high levels of inflation remains a top priority for the U.S. central bank.
Data showed earlier in the day that Eurozone inflation accelerated further in June to a new record high on surging energy prices, flash data from Eurostat showed.
The harmonized index of consumer prices rose an annual 8.6 percent in June, faster than the 8.1 percent rise in May and economists' forecast of 8.4 percent.
ECB policymaker and fiscal hawk Robert Holzmann said in an interview with Austrian newspaper Oberoesterreichische Nachrichten that he would have preferred earlier moves on interest rates than the ECB's current plan to raise them in July for the first time in more than a decade.
