Gold prices gained on Friday, helped by a pullback in the dollar, although bullion was headed for a weekly fall as hotter-than-expected U.S. inflation data dented expectations for a super-sized 50-basis-point (bps) Federal Reserve rate cut.

Gold futures fell Thursday after hotter than expected U.S. inflation data lifted the dollar and Treasury yields, likely lowering the odds of a larger September interest rate cut by the Federal Reserve.