The US greenback has continued to strengthen since late last week and has continued to pressure gold prices lower on Tuesday.
Data out on Tuesday for the the UK showed year-on-year inflation hit a five year high of 3%.
Weakness in the energy patch weighed on the entire commodities complex at the end of the week amid forecasts that hurricane Nate was unlikely to go beyond a category one storm.
US crude oil stockpiles fell sharply last week, amid lower imports and rising gasoline inventories.
After initially rising late on Wednesday, in the wake of US President Trump's tax reform plan, the US dollar traded lower on Thursday.
Gold consolidated on Thursday, after a two day fall of 2.71%, trading marginally higher by 0.1% to $1,284/Oz.
Safe haven gold eased on Tuesday under pressure from a stronger dollar, as investors looked to book profits ahead of rising North Korean tensions.
Safe haven currencies were lower on Tuesday, paring gains following the latest round of North Korean rhetoric.
Gains in energy futures boosted the commodities complex as Turkey said it could sever Kurdish exports passing through its territory on their way to the port of Ceyhan in protest over the region's referendum which began on Monday.
Elections in Germany and New Zealand over the weekend and an announcement of a snap vote in Japan were the dominant themes at the start of the week, until some incendiary comments from North Korea's foreign minister later in the day.
Friday trading saw a fair degree of volatility, with key data releases from the Eurozone, fresh threats from North Korea and UK Prime Minister Theresa May delivering a speech outlining her view for Brexit.
Wednesday saw the Fed Chair Janet Yellen confirm that there would be a winding down of it's $4.5 trillion balance sheet in October and hinted at a possible rate increase by the end of the year.
Wednesday saw the US Fed announce a reduction in their $4.5 trillion balance sheet in October and hint of another rate increase this year.
The gold market was fairly subdued on Tuesday as investors await the conclusion of the US Fed's two day meeting, while the dollar retreated during the day's trading.
The dollar was steady on Wednesday with the dollar index down only 0.06% to 91.736 by 1725 BST as the market waits to hear from the FOMC on monetary policy, due at 1900 BST.
Currency markets were steady on Wednesday ahead of a key speech from the US Fed.
Currency markets were fairly quiet on Tuesday, as traders opted to keep heir powder dry until Wednesday's economic and statement release from the Fed.
Risk aversion came down a notch at the start of the week following an uneventful weekend in terms of fresh developments out of the Korean peninsula and even after the UN Security Council refrained from slapping new sanctions on Pyongyang despite its latest missile tests.
Friday trading saw the pound surge against all its major counterparts as the world woke up to another missile test from North Korea.
Thursday saw Pacific region tensions increase with the latest rhetoric from North Korea stating that the US should be "beaten to death like a rabid dog" and that the US mainland should be reduced to "ashes and darkness." Several verbal threats were also shot across the bow of Japan.