09:37 AM EST, 02/28/2025 (MT Newswires) -- Gold traded lower for a second day early on Friday as the dollar rose after a key U.S inflation measure eased last month.

Gold for April delivery was last seen down US$31.40 to US$2,864.50 per ounce, continuing a correction from the Feb.24 record high of US$2,963.20 per ounce.

The U.S. Commerce Department reported that its personal consumption expenditures price index (PCE), the Federal Reserve's preferred inflation measure, rose at a 2.5% annualized rate in January, down from 2.6% in December and matching the consensus analyst estimate, according to Marketwatch.

Core PCE, excluding volatile food and energy prices, also ran at a 2.6% pace last month, down from 2.9% in December and again matching analysts' expectations.

The result is unlikely to affect the Federal Reserve's stance on interest rates, with the central bank widely expected to leave rates unchanged for much of this year as the Trump Administration continues to threaten inflationary 25% tariffs on imports from Canada and Mexico while has promised to boost the levy on Chinese imports to 20% from 10%.

The dollar rose following the PCE report, with the ICE dollar index last seen up 0.06 points to 107.31. Treasury yields eased, with the U.S. two-year note last seen down 1.0 basis points to 4.051%, while the U.S. 10-year note was paying 4.252%, down 1.3 points.