Spot gold traded near a record high of $2,685.64 per ounce on Friday, as market participants awaited key U.S. personal consumption expenditures (PCE) inflation data for more guidance on the Federal Reserve's interest rate moves.

According to market consensus, core PCE inflation is expected to remain unchanged at an annualized rate of 2.6% in August, while headline PCE inflation is expected to fall to an annualized rate of 2.3% from 2.5% in July.

However, strong Gross Domestic Product (GDP) data released on Thursday somewhat challenged market expectations of an aggressive monetary policy easing cycle. The final data showed that the U.S. economy grew at an annualized rate of 3% in the second quarter of 2024, compared to a revised 1.6% growth in the first quarter. In addition, initial jobless claims unexpectedly fell to a four-month low of 218,000 for the week ending September 21st.

The market now expects about a 49% chance that the Fed will cut another 50 basis points at its November policy meeting. China's stimulus measures this week also provided some support for gold.

As of 7:24 GMT on Friday, spot gold was marginally down 0.26%, trading at $2,665.35 per ounce. Signs of a technical correction may be underway, with the daily Relative Strength Index (RSI) showing overbought conditions.

Gold futures for December delivery were down 0.35% on the day, trading at $2,685.40 an ounce. The U.S. dollar index, which reflects the relative strength of the greenback, edged up 0.13 percent to 100.701 on Friday.