Bullion ended the session little changed as worries about the U.S. fiscal cliff kept investors on the sidelines.
Gold futures ended nearly flat at $1,697 an ounce on Friday amid uncertainty over stalled U.S. budget negotiations.
Gold fell 1 percent on Thursday as fears the Fed might withdraw its economic stimulus if the job market improved dramatically prompted funds to reduce their bullish bets.
Gold rose on Wednesday as its inflation-hedge appeal received a boost after the U.S. Federal Reserve took an unprecedented step to commit to near-zero interest rates as long as unemployment remains high.
Gold was little changed on Tuesday, but sentiment ahead of a U.S. Fed meeting boded for more gains.
Gold rose ahead of a key Federal Reserve policy meeting, but gains were capped by lingering fears about the "fiscal cliff"
Gold edged up on Friday, rebounding from early lows, as upbeat U.S. nonfarm payrolls data did not alter a view that the Federal Reserve will continue to use bullion-friendly economic stimulus to boost growth.
Gold prices steadied near $1,690 an ounce, as buyers remained on the sidelines after the ECB left rates unchanged as expected, and on uncertainty over negotiations to avert a U.S. fiscal crisis.
Gold slipped to a one-month low below $1,700 an ounce as a weaker price forecast by Goldman triggered some fund liquidation, offsetting news of fresh central bank buying.
Gold slid as liquidation of long positions converged with fears about the U.S. fiscal cliff.
Gold edged up in quiet trade on a dollar drop and a mixed bag of U.S. and Chinese manufacturing data.