Gold prices were pressured by an uptick in the US dollar on Friday, but remained on track for a weekly gain as uncertainties around incoming President Donald Trump's policies and renewed bets of further rate cuts lifted bullion above the key $2,700 level.

Spot gold eased 0.4 percent to $2,701.03 per ounce by 03:10 p.m. ET (2010 GMT), while US  gold futures settled 0.1 percent lower to $2,748.70.

"The pullback today is not significant, but more of a profit-taking move than anything else, maybe helped by the dollar being a little higher in the day, adding some light pressure," said David Meger, director of metals trading at High Ridge Futures.

Gold hit over one-month high on Thursday, $65.6 away from its all-time high of $2,790.15 hit in October. Prices have gained 0.5 percent so far for the week, their third straight weekly gain after softer-than-expected US core inflation figures on Wednesday intensified speculation of more than a single rate cut from the Fed.

Traders are pricing in two rate cuts by year-end, with Fed Governor Christopher Waller hinting at the possibility of more cuts should economic data weaken further.

Markets now keenly await Trump's inauguration on Jan. 20, and his broad trade tariffs are expected to further ignite inflation and trigger trade wars, potentially increasing bullion's safe-haven appeal.

"The uncertainty in regard to the policies that President Trump is going to put in place has been one of the supportive factors for gold," Meger added.

Non-yielding gold, often seen as a hedge against inflation and political uncertainty, benefits from lower interest rates.