Gold prices slipped on Friday, heading for their first weekly decline in nine weeks, as a stronger U.S. dollar and investor caution ahead of key inflation data weighed on sentiment. According to Reuters, spot gold fell 0.2% to $4,116.09 per ounce as of 0504 GMT, while U.S. gold futures for December delivery were down 0.4% at $4,131.10 per ounce. Advertisement

After a spectacular rally that pushed prices to record highs earlier this month, bullion has fallen about 3% so far this week, its steepest drop since mid-May, as traders booked profits. The US dollar index strengthened for a third straight session, making gold costlier for overseas investors and curbing demand.

Tim Waterer, Chief Market Analyst at KCM Trade, told Reuters that optimism over improving U.S.-China relations is support

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