On Thursday, gold failed to hold on to early gains and fell below $2,330 per troy ounce.
The latest US Consumer Price Index report released by the Labor Department on Wednesday raised fears that the Federal Reserve (Fed) may delay interest rate cuts.
At the same time, a rise in US Treasury yields, driven by better-than-expected inflation figures, also weighed on gold.
The yield on the 10-year US Treasury note rose 0.18% to 4.569.
In addition, the Fed's statement after its March meeting emphasized that the US central bank could keep interest rates high for longer.
It is worth noting that concerns over the escalating geopolitical crisis in the Middle East failed to support gold as a safe-haven asset. The ceasefire talks between Israel and Hamas failed, while the likelihood of Iranian retaliation for the alleged Israeli attack on its embassy in Syria is very high.
The markets have now shifted their attention to the weekly data on Initial Jobless Claims and the Producer Price Index (PPI), which may provide clues on the Fed's near-term policy.
The PPI is expected to rise 0.2% month-over-month from the previous reading of 0.3%, while US jobless claims are expected to come in at 216,000, down slightly from last week's 221,000.
The XAU/USD is trading at $2,328, down 0.22% in the last 24 hours.
The XAU/USD continues to move within a bullish channel of upward movement. Now, we should expect an attempt to extend the decline and test the support level near the 2,325 level. From there, there will be a rebound to the upside and the continuation of gold's growth, with a potential target above the 2,445 level.
Read more: Dollar falls against world currencies after the release of inflation data in the US