NEW YORK: Gold prices inched lower in early trade on Friday as the dollar rebounded after robust US manufacturing data, although bullion was still on track to register a third straight weekly gain.
Spot gold eased 0.1% at $1,874.11 per ounce by 12:29 p.m. EDT (1629 GMT). But prices were headed for a 1.7% weekly gain, helped by subdued US Treasury yields. US gold futures fell 0.5% to $1,872.80.
"Strong economic data like the PMI does potentially have the opportunity to cause some short-term ripples in the gold market, based on the premise that the Federal Reserve could potentially reduce bond buying quicker than anticipated," said David Meger, director of metals trading at High Ridge Futures.
Wednesday's Fed minutes showed a "number" of officials were ready to taper monetary policy on continued economic recovery, although market participants shrugged off those concerns as they do not expect it to be imminent. Elsewhere, palladium fell 2.8% to $2,772.68 an ounce and headed for its biggest weekly decline since the week ending Jan. 29, while silver eased 1.5% at $27.32.
Platinum shed 2.4% to $1,167.70, on track for its second straight weekly decline.