Gold prices were muted on Friday, stuck in a tight trading range as the dollar extended gains from the previous session when strong U.S. inflation data and trade war concerns boosted demand for the greenback.
Spot gold was down 0.1 percent at $1,245.61 an ounce, as of 0347 GMT. For the week, the metal was down about 0.7 percent.
U.S. gold futures for August delivery were little changed at $1,246.10 an ounce.
The dollar climbed to a six-month peak versus the yen on Friday and held firm near a 10-day high against a basket of currencies boosted by expectations U.S. inflation will pick up, although concerns about an escalation in U.S.-China trade tensions limited the greenback's gains.
U.S. consumer price data on Thursday showed a steady buildup of inflation that could keep the Federal Reserve on a path of gradual interest rate increases.
A stronger dollar and higher U.S. rates reduce demand for non-interest bearing gold as the metal becomes more expensive for holders of other currencies.
Elsewhere, the European Central Bank will keep rates at a record low for as long as needed to raise inflation, minutes of the bank's latest meeting showed.
Meanwhile, Asian shares rose on Friday following gains on Wall Street overnight, as concerns over an escalating U.S. trade war with China took a breather.
The United States and China could reopen talks on trade but only if Beijing is willing to make significant changes, U.S. Treasury Secretary Steven Mnuchin said on Thursday.
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