The personal consumption expenditures price index, a measure closely watched by the Federal Reserve, showed that prices rose 0.1% in November and 2.4% over the past 12 months, but the inflation has not been as persistent as economists predicted.

Gold futures are currently trading 1.7% higher at $2,652.50 per troy ounce, but still poised for a modest weekly loss. The yellow metal is under pressure from the strengthening US dollar after the Fed announced fewer rate cuts next year, as well as the latest US GDP data showing the economy grew faster than expected in third trimester.