Gold prices fell in early trading on a firmer dollar, but remain on track for a weekly gain after lower-than-expected US inflation bolstered expectations of further rate cuts.
New York futures fell 0.2% to $4,355.70 a troy ounce, although they are up 0.6% for the week. The US dollar index rose 0.2% to 98.64.
“Traders are now assigning about a 25% chance of a drawdown in January and are almost completely pricing in April,” ANZ analysts said.