Gold muted on Friday as more solid than projected inflation figures spiked more concerns that Fed will consider maintaining higher interest rate for longer period.

Spot gold advanced by 0.1% to 2,163.98 per ounce, while gold futures were flat at $2,168.05 per ounce.

However, bullion prices encountered a plunge due to a strengthening dollar. Following the release of robust inflation figures this week, the greenback surged to its highest level in over a week, as traders anticipate Fed’s meeting.

Gold was poised for weekly dips post experiencing steep losses touched on Monday.

The primary source of pressure on the price of gold stemmed from increasing concerns about an upcoming Federal Reserve meeting next week. This unease was amplified by stronger-than-anticipated signals of consumer and producer inflation for the third consecutive month.

Stubborn inflation raised traders’ worries of hawkish tone from Fed, particularly as the central bank hinted its intention for interest rate trim in 2024 will be widely determined based on the inflation trajectory.

As maintaining higher rates for longer period negatively impacted gold and non-yielding assets.