2023.04.1410:21:00UTC+00Gold Subdued As Investors Await More US Data, Earnings

Gold prices traded lower on Friday despite a weaker dollar index making bullion cheaper for buyers holding other currencies.

Spot gold slipped 0.1 percent to $2,037.71 per ounce, while U.S. gold futures were down 0.2 percent at $2,051.65.

Prices were on track for a second consecutive weekly gain amid bets that the U.S. Federal Reserve may soon pause its hiking of interest rates.

Government data Thursday showed prices paid to U.S. producers rose 2.7 percent over a year earlier, marking the smallest gain in more than two years.

A day earlier, separate data showed consumer inflation slowed to 5 percent from 6 percent in the previous month.

CME Group's Fedwatch tool indicates the Fed will raise the federal fund rate by 25 basis points in May, with rate cuts seen in the back half of the year to boost consumer spending and growth.

It appears the European Central Bank is also moving towards a smaller 25-bps rate hike in May.

As inflation and rate hike worries ease, investors will assess U.S. reports on retail sales, industrial production, import and export prices and consumer sentiment later in the day for additional clues about the economic outlook.

Investors also await cues from earnings, with financials giants Citigroup (C), JPMorgan Chase (JPM) and Wells Fargo (WFC) due to report their quarterly results before the opening bell.