Gold fell to a five-week low on Friday, heading for its weakest week in two months on prospects the United States would curb its stimulus soon and as fears of a U.S.-led military attack on Syria receded.
The United States and Russia started talks on Thursday, trying to flesh out a Moscow plan to dispose of Syrian President Bashar Assad's chemical weapons.
Spot gold hit its weakest since August 8 at $1,304.56 earlier and is on track to record its biggest weekly drop since June 21 at 5.3 percent so far. It was last quoted at $1,311 an ounce, down 0.7 percent. As technical support at 100-and 50-day moving averages has been broken, traders said $1,307 should now provide a floor, but a consistent fall through that level would trigger further losses to August's lows of $1,273.
U.S. gold futures for December delivery settled $22.00 lower at $1,308.60.
"Gold's drop at the beginning of the week was mostly due to the waning safe-haven buying after the diplomatic action in Syria," MKS SA Senior Vice President Bernard Sin said.
"But now it's all about the Fed tapering talks and expectations that the central bank will start, albeit slowly, as soon as this month."