Gold set to snap nine-week winning streak as US inflation test looms

Gold prices eased on Friday and were on track for their first weekly drop in 10, weighed down a stronger dollar and as market participants squared positions ahead of a key U.S. inflation report due later in the day. Spot gold was down 0.2% at $4,118.68 per ounce, as of 0315 GMT. Bullion has fallen 3% so far this week, heading for its biggest weekly percentage drop since mid-May. U.S. gold futures for December delivery fell 0.3% to $4,133.40 per ounce. The dollar index gained for a third straight session against its rivals, making gold more expensive for other currency holders. “A meeting between the U.S. and Chinese leaders stands a decent chance of de-escalating trade tensions, which is aiding the dollar and drying up some safe-haven demand for gold,” said KCM Trade Chief Market Analyst Tim Waterer.