Ammon News - Gold prices fell over 1% on Friday as the dollar held close to two-week highs after U.S. inflation data came in line with expectations, suggesting the Federal Reserve may adopt a cautious stance on additional rate cuts.

Spot gold was down 1% at $2,846.19 an ounce by 01:44 p.m. ET (1844 GMT). Bullion has so far lost 3.1% for the week, its steepest weekly fall since November.

U.S. gold futures settled 1.6% lower at $2,848.50.

The dollar index was set for a weekly gain, making dollar-priced gold more expensive for overseas buyers.

Wall Street's main indexes had a subdued start as investors remain cautious over potential price pressures from President Trump's policies.

The Personal Consumption Expenditures (PCE) price index increased 0.3% in January, in line with expectations, after advancing by an unrevised 0.3% in December.

Spot silver fell 0.8% to $31, platinum lost 1.1% to $938.50 and palladium slipped 0.6% to $914. All three metals' prices looked set for monthly declines. Reuters