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Gold prices fell on Friday and were headed for a second straight weekly fall as traders assessed the impact of Donald Trump's presidency and its implications for U.S. interest rates.

Spot gold fell 0.7% to $2,687.65 per ounce as of 0645 GMT and has slid nearly 2% this week. Prices hit over three-week lows on Wednesday in the aftermath of Trump's U.S. presidential election win, but rebounded by over 1% a day later.

U.S. gold futures shed 0.4% to $2,694.50 on the day.

The U.S. dollar index was set for a slight weekly gain after Trump's election victory. A stronger dollar makes bullion more expensive for overseas buyers. [USD/]

"The gold market was waiting for a trigger to prompt some liquidation. There is some kind of uncertainty on the trajectory of U.S. rate cuts and that's why we are seeing this pullback in gold," said Soni Kumari, a commodity strategist at ANZ.

The Federal Reserve cut interest rates by 25 basis points on Thursday, as was expected, but indicated a careful and measured approach to any further reductions. Chair Jerome Powell said the presidential election results would have no "near-term" impact on monetary policy.

Traders see a 71% chance of another 25-bps cut in December.

Bullion is considered a hedge against inflation, but higher rates raise the opportunity cost of holding the commodity.

"During Trump's initial term in office, gold rallied, and his policies are unlikely to undergo significant changes," said Hugo Pascal, a precious metals trader at InProved.

"Running a higher deficit, putting tariffs in place are both inflationary measures, which should be positive for gold."

Elsewhere, Beijing concludes its five-day meeting of the Standing Committee of the National People's Congress later in the day, which investors are closely watching for more details on stimulus measures.

Spot silver fell 1.39% to $31.55 per ounce, platinum fell 0.95% to $987.75 and palladium shed 1.51% to $1,009.00.