Gold prices edged lower on Friday, but were set for a fourth weekly gain as traders pared down expectations of aggressive policy tightening by the Federal Reserve.
Spot gold slipped 0.1 percent to $1,787.79 per ounce, while U.S. gold futures were down 0.2 percent at $1,802.95.
The dollar index remained on the back foot as signs of cooling consumer and producer price inflation in the United States prompted traders to pare bets of aggressive policy tightening by the Federal Reserve.
Odds of a 75-bps hike in September have fallen to around 34 percent on the back of weak CPI and PPI data.
Trading later in the day may be impacted by reaction to readings on U.S. import and exports prices, consumer sentiment and inflation expectations.
San Francisco Federal Reserve Bank president Mary Daly warned on Thursday it is far too early for the U.S. central bank to "declare victory" in its fight against inflation.
Chicago Fed President Charles Evans said he believes the Fed has plenty more work to do.
Minneapolis Fed President Neel Kashkari said he is sticking to his view that the U.S. central bank will need to raise its policy rate another 1.5 percentage points this year and more in 2023, even if that causes a recession.
