REUTERS

Gold prices fell over 1 percent on Friday as the dollar held close to two-week highs after US 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 percent at $2,846.19 an ounce by 01:44 p.m. ET (1844 GMT). Bullion has so far lost 3.1 percent for the week, its steepest weekly fall since November.

US gold futures settled 1.6 percent lower at $2,848.50.

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

“I think the main element impacting the gold and silver markets is the