The dollar retreated on Friday amid concerns about the strength of the U.S. economy after higher-than-expected producer prices raised expectations that the Federal Reserve will desist from cutting interest rates until at least the middle of the year.

The rise in producer prices reported by the Labor Department was the largest in five months and followed a hotter-than-expected report on Tuesday for consumer prices last month.

Gold prices moved little in Asian trade on Friday after retaking a key level as weak U.S. retail sales data spurred some doubts over when the Federal Reserve will begin cutting interest rates.

Bullion prices rose back above the $2,000 an ounce level on Thursday after breaking well below the level earlier in the week. Some safe haven demand- following data showing recessions in Japan and the UK- also aided gold prices. 

The dollar slid from a fresh three-month high against a major currency basket on Wednesday, as investors consolidated gains following the previous session's hotter-than-expected U.S. inflation report.

The inflation data for January pushed back bets on a first Federal Reserve rate cut to the middle of the year.

Gold prices fell below a key support level in Asian trade on Wednesday after a hotter-than-expected inflation reading for January spurred more fears that the Federal Reserve will keep rates higher for longer. 

The yellow metal saw extended losses after spot prices slid below the closely-watched $2,000 an ounce support on Tuesday, with analysts warning of more potential declines after the loss of the key support level. 

Cryptocurrency stocks are rising Wednesday on the back of the continued climb in the price of Bitcoin, which has climbed a further 4%.

Bitcoin is currently trading around $51,770, its highest level since December 2021. The rise has taken its market cap to $1 trillion. Ethereum, the second-largest cryptocurrency, is up close to 4% at the time of writing, trading at around $2,746.

The dollar rose to three-month peaks on Tuesday, after data showed U.S. inflation rose more than expected in January, reinforcing expectations that the Federal Reserve will hold interest rates steady in March.

The greenback also topped 150 yen for the first time since November following the data.

Oil prices settled slightly Monday as a step-up in geopolitical tensions in Middle East supported bullish bets on energy. 

At 14:30 ET, West Texas Intermediate crude futures settled $0.10 higher at $76.92 per barrel, while  Brent oil futures expiring in April fell 0.2% to $82.00 a barrel. 

Gold prices moved little in holiday-thinned Asian trade on Monday, with the yellow metal keeping to a trading range established over the past week as traders sought more cues from upcoming U.S. inflation data.

Among industrial metals, copper prices hit a near three-month low after KoBold Metals- a startup backed by Microsoft (NASDAQ:MSFT) founder Bill Gates, found a large copper deposit in Zambia that could form a major copper mine.

Oil prices settled higher on Friday, up about 6% on a week-on-week basis, as worries about supply from the Middle East mounted and as reining outages tightened refined products markets.

Brent crude futures settled up 56 cents, or 0.7%, at $82.19 a barrel. U.S. West Texas Intermediate crude futures settled up 62 cents or 0.8%, at $76.84 a barrel.

The dollar eased on Friday as it headed for a fourth week of gains while traders reduced their bets on how quickly the Bank of Japan might raise interest rates and how soon the Federal Reserve will cut them.

Traders shrugged off revised U.S. monthly consumer prices that rose less than initially estimated in December. While underlying inflation remained a bit warm, the mixed picture did not alter the market's outlook on the timing of Fed rate cuts.