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Gold prices dipped on Friday on a firmer dollar and surging Asian shares and were set for the first weekly decline since May, after falling to a two-week low in the previous session.

Asian shares extended gains to eight-month highs, on track for a solid weekly rise, as better-than-expected economic data from China lifted risk sentiment that was already buoyant after record highs on Wall Street.

The U.S. dollar extended its gains and scaled a three-week high against the yen.

Spot gold eased around $1,328.78 per ounce. Bullion fell about 0.6 percent on Thursday and hit $1,319.82, its lowest since June 30.

The metal has fallen about 2.7 percent so far this week and is on track for its first weekly decline since the week ending May 27.

Gold was on track for the first weekly drop since May as risk appetite returned and investors turned away from haven assets including bullion and the yen amid record highs for U.S. shares.

Bullion for immediate delivery fell as much as 0.7 percent to $1,326.60 an ounce and was at $1,332 at 2:44 p.m. in Singapore, according to Bloomberg generic pricing. The metal is down 2.5 percent this week

and is holding just above the 20-day moving average of about $1,325. Silver futures in Shanghai headed for a sixth weekly gain, the longest winning run in two years.

Investors will be scrutinizing U.S. data before the Federal Reserve’s next policy-setting panel meeting on July 26-27 to gauge the strength of the economy. Releases due on Friday include gauges of household spending, inflation, industrial production and consumer confidence.

Investors see only a 6 percent probability of a rate increase this month, according to pricing in Fed funds futures contracts, though the chances of a move in September have rebounded to 19 percent -- compared with just 2 percent at the start of the month -- with December viewed as a35 percent bet. Higher rates damp the appeal of bullion which doesn’t pay interest.

Reference: Reuters