Gold prices dipped slightly on Friday, continuing drops for the third day in a row, as stronger-than-expected U.S. inflation and job market data rekindled concerns about further Fed rate hikes.

After statistics revealed that the personal consumption expenditures prices read beyond anticipated in the Q4 of 2023, gold fell on Thursday while Treasury yields rose.

Separate statistics revealed that initial jobless claims surprisingly declined over the past week, showing that the labor market remained strong despite the Fed's forecasts for some cooling.

Spot gold plunged to 0.1% to $1,985.79 per ounce, meanwhile gold futures sank by 0.2% to $1,994.85 per ounce.

However, gold was set to make minor gains this week, ending a two-week losing streak.

Lower than projected Q1 GDP figures from the United States indicated that the economy was easing due to rising interest rates and inflation.

Fed is largely projected to hike interest rates by 25 basis points when it meets next week, with any indications on the future of monetary policy being closely followed.