Gold fell and the dollar strengthened as traders assessed U.S. data on consumer spending, import flows and fresh trade tensions between the U.S. and China. Consumers stepped back in April while imports plunged sharply as companies adjusted to higher tariffs.

Meanwhile, the Federal Reserve's preferred price gauge remained tame, reinforcing bets that the U.S. central bank won't need to lower borrowing costs until later this year. That scenario would be negative for bullion as it typically benefits from lower interest rates. On the trade front, U.S. President Donald Trump said China was not complying with a trade deal negotiated earlier this month, indicating fresh turmoil on the issue.

Trump's remarks came after Treasury Secretary Scott Bessent characterized trade talks with Beijing as "a little bit stalled."

Read More: Trump Says China Is "Totally Violating" Trade Agreement with U.S.

Gold was headed for a weekly loss of 2% after posting a nearly 5% gain the previous week. The price decline was also driven by technical factors, said Kelvin Wong, senior analyst at Oanda Asia Pacific Pte. "Gold has twice failed to break through a key short-term resistance level at $3,328," he said.

The precious metal is still up 25% this year, supported by its appeal as a safe haven as markets reel from uncertainty surrounding Trump's tariff agenda. Spot gold fell 0.9% to $3,289.25 an ounce as of 12:30 p.m. in New York. Silver, palladium and platinum fell. (alg)

Source: Bloomberg