Gold futures on the COMEX Division of the New York Mercantile Exchange moved moderately lower on Friday, as eurozone ministers are expected to approve the next round of funding for Greece next week, reducing demand for the precious metal as a safe-haven asset.

The most active gold contract for April delivery dropped 2.5 dollars, or 0.1 percent, to 1,725.9 dollars per ounce.

Optimism grows after a Greek government spokesman said eurozone ministers are expected to approve the 130 billion euro bailout package next Monday.

Analysts said gold market was quiet on Friday, as many traders chose to stay sidelines ahead of the three-day U.S. holiday weekend.

Meanwhile, a slightly higher U.S. dollar also added downward pressure on gold, as a stronger dollar makes dollar-denominated gold less attractive to holders of other currencies.

The U.S. Labor Department said its consumer price index rose by 0.2 percent in January after coming in unchanged in December.

Analysts pointed out that in January the index witnessed the biggest jump in four months, mainly due to rising gasoline price, investors' increasing concerns that a higher energy cost could slow the economic recovery.

Gold got a boost from rising inflation concerns, as many investors purchase the precious metal as a hedge against inflation.

Silver for March delivery dropped 15.4 cents, or 0.5 percent, to 33.216 dollars per ounce.