Mumbai, Oct 24 : Gold prices fell on Friday morning on the Multi Commodity Exchange (MCX), as investors awaited key US inflation data due later in the day.

The MCX Gold December futures were down 0.44 per cent at Rs 1,23,552 per 10 grams, while MCX Silver December contracts declined 0.98 per cent to Rs 1,47,052 per kilogram.

Experts said that gold prices were on track to end their nine-week winning streak, as heavy selling pressure pulled the yellow metal down from record highs.

"The drop comes as investors book profits amid stretched valuations, renewed optimism over a potential US-China trade deal, and a stronger US dollar," they added.

"Looking ahead, markets will focus on the release of US CPI data later today, updates on the US government shutdown, and next week's meeting between US President Donald Trump and Chinese President Xi Jinping," analysts said.

Earlier this week, gold saw its biggest intraday fall in five years, dropping more than 5 per cent in a single session.

Despite the recent correction, gold remains up over 50 per cent so far this year, supported by global trade tensions.

Market focus has now shifted to the upcoming trade talks between US President Donald Trump and Chinese President Xi Jinping next week.

In the international market, spot gold fell 0.2 per cent to $4,118.68 per ounce at 3:15 am GMT, marking its first weekly decline in ten weeks.

Bullion has dropped about 3 per cent this week, heading for its biggest weekly loss since mid-May.

A stronger US dollar also weighed on gold prices, making the metal more expensive for holders of other currencies. The dollar index rose for the third straight session.

Market attention is now on the US Consumer Price Index (CPI) report, which is expected to show that core inflation stayed at 3.1 per cent in September.

The release of this report was delayed earlier due to a temporary government shutdown.

Investors are also factoring in a likely 25-basis-point interest rate cut by the US Federal Reserve next week.

Lower interest rates generally boost gold prices, as they reduce the opportunity cost of holding the non-yielding asset.

/IANS