Gold prices pared losses on Friday after slightly softer-than-expected US inflation data reinforced expectations that the Federal Reserve will cut interest rates next week, but the metal was still set for its first weekly loss in 10 weeks.

Spot gold fell 0.2 per cent at $4,118.29 per ounce by 01:42 p.m. ET (1742 GMT), after falling nearly 2 per cent earlier in the session. The price is down over 3 per cent for the week.

US gold futures for December delivery settled 0.2 per cent lower at $4,137.8 per ounce.

“Gold and silver jump as September core CPI comes in lower than expectations but it’s likely insufficient to entirely blunt this week’s selloff. Price action suggests that gold and, especially silver, need another leg lower before consolidation,” said Tai Wong, an independent metals t

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