Gold prices traded lower on Friday as strong labor market and inflation data released overnight revived rate hike fears.
Spot gold slipped 0.2 percent to $1,983.51 per ounce while U.S. gold futures were down 0.4 percent at $1,991.75.
The dollar index rose to a one-week high after the Bank of Japan kept rates ultra-low and announced a broad review of its longstanding monetary easing measures.
In its first meeting under new Governor Kazuo Ueda, the central bank scrapped its guidance on future interest rate levels., which previously said that rates would stay at "current or lower levels."
Meanwhile, U.S. GDP grew 1.1 percent in the first three months of 2023 after expanding by 2.6 percent in the fourth quarter of 2022, the government said in its advance estimate on Thursday.
The quarterly inflation number within the GDP report came in higher than expected and jobless claims unexpectedly declined in the week ended April 22, underpinning rate hike expectations for next week's FOMC meeting.
Investors await a report on U.S. personal income and spending later in the day, which includes a reading on inflation said to be preferred by the Federal Reserve.
Markets currently price in a 25-bps rate hike by the Fed next week and then a pause.
The European Bank has to decide between a 25-bps hike and 50-bps hike. The Bank of England is also forecast to deliver a rate rise in May.
