Gold prices fell on Friday and were on track for a weekly decline, as an overall stronger dollar and the prospect of fewer U.S. interest rate cuts offset support from rising geopolitical risks in the Middle East.

The Federal Open Market Committee (FOMC) announced its decision to hold the federal funds rate steady within a target range of 4-1/4 to 4-1/2 percent.

Gold prices in the US market was down 0.7 per cent to $3,348 an ounce and dipped 2.5 per cent for the week. The US gold futures slipped 1.3 per cent to $3,364.