Gold prices settled lower on Friday, but held onto a modest gain for the week -- their second in a row -- on the back of overall weakness in the U.S. dollar.

Traders looked to U.S. inflation data and the outcome of the Federal Reserve's monetary policy meeting, both due next week, as the catalysts for gold's next big move.

Gold futures for August delivery fell $1.40, or nearly 0.1%, to settle at $1,977.20 per ounce on Comex, with prices based on the most-active contract up 0.4% for the week, according to Dow Jones Market Data.

Silver futures for July delivery rose by 6 cents, or almost 0.3%, to $24.41 per ounce, with prices up 2.8% for the week.

Palladium for September delivery declined by $53.50, or 3.9%, to $1,304.80 per ounce, ending down 7% for the week, while platinum for July delivery fell by $1.10, or 0.1%, to $1,012.80 per ounce, with prices up 0.9% from the week-ago finish.

Copper for July delivery shed 0.2% to settle at $3.79 per pound, tacking on nearly 1.7% for the week.

The pullback in gold prices Friday was likely due to a combination of profit taking with concerns about the Fed's decision next week and next month on interest rates, as well as inflation numbers also due next week, said Adam Koos, president at Libertas Wealth Management Group.

Source : MarketWatch