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 Gold prices slipped on Friday as the dollar ticked up, with traders awaiting U.S. inflation data due later in the day to gauge the Federal Reserve's likely stance on further interest rate hikes.

Spot gold was down 0.3% at $1,923.33 per ounce, as of 0648 GMT, shedding 0.2% so far in the week. U.S. gold futures were off 0.4% at $1,923.00.

The dollar index gained 0.2%. A stronger greenback makes dollar-priced bullion less affordable for other currency holders.

Gold is seeing a pull-back as the dollar is on the higher side and the U.S. GDP data is also slightly pressuring prices, said Ajay Kedia, director at Kedia Commodities, Mumbai.

Data on Thursday showed the U.S. economy grew at a faster pace in the December quarter than economists had expected, prompting bets the Fed would keep rates higher for longer.

However, this could have been the last quarter of solid growth before the impact of the Fed's aggressive tightening spree shows up, with most economists expecting a mild recession by the second half of 2023.

Traders broadly expect the Fed to scale back rate hikes to 25 basis points (bps) at its Jan. 31-Feb. 1 meeting, from 50 bps in December.

Investors are now awaiting U.S. personal consumption expenditures (PCE) data, the Fed's preferred inflation measure, at 1330 GMT for cues on the central bank's path forward.

A downside surprise in the data may point towards a less-hawkish Fed, which could drive gold prices higher in the longer run, said IG Market strategist Yeap Jun Rong.

Lower interest rates tend to be beneficial for bullion as it lowers the opportunity cost of holding the non-yielding asset.

Spot silver fell 0.6% to $23.76 per ounce.

Platinum lost 0.7% to $1,011.13 and palladium slipped 0.9% to $1,662.38. Both metals were headed for a third straight weekly decline.