Gold prices eased on Friday but hovered around the $2,700 level, as traders assessed the impact of Donald Trump's presidency and its implications for the U.S. interest rate outlook.

Spot gold fell 0.4% to $2,697.19 per ounce as of 0251 GMT and was headed for a weekly loss. However, prices rose more than 1% in the last session, bouncing from over a 3-week low.

U.S. gold futures were flat at $2,704.50, while the U.S. dollar index was set for a slight weekly gain after Trump's election victory.

A stronger dollar makes bullion more expensive for overseas buyers.

Gold prices are marginally pressured due to the market's uncertainty over U.S. political and policy developments, said Kyle Rodda, financial market analyst at Capital.com.

The long-term uptrend stays strong for gold, supported by expected rate cuts and ongoing geopolitical tensions, Rodda added.

Bullion is considered a hedge during uncertainties and tends to thrive in a low-interest-rate environment.

At the end of its two-day policy meeting on Thursday, the Federal Reserve cut interest rates by 25 basis points as anticipated, but indicated a careful and measured approach to any future rate cuts.

Traders now see a 71% chance of another 25-bps cut in December, in what could be the third reduction this year.

In the long term, it still looks bullish for gold but in the short-term, if prices drop to $2,643, the next levels of support will be $2,620-$2,520, said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.

Meanwhile, global physically-backed gold exchange-traded funds (ETFs) saw inflows for the sixth straight month in October, the World Gold Council (WGC) said.

Elsewhere, Beijing will wrap up a key five-day meeting later in the day, which investors are closely watching for more details on stimulus measures.

Spot silver fell 0.8% to $31.75 per ounce, platinum fell 0.2% to $994.80 and palladium shed 0.21% to $1,022.36.

(Reporting by Daksh Grover and Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu and Sumana Nandy)