Gold ended lower after a day of choppy trading on Thursday, on signs that lawmakers in Washington might reach a deal to avert a potential U.S. debt default, which boosted the dollar and discouraged safe-haven bids.
On Thursday, Republicans in the House of Representatives offered President Barack Obama a short-term increase in the federal debt limit if he will agree to negotiate with them on a broad range of financial issues.
Bullion was on track to fall for a third consecutive day, while the S&P 500 equities index rallied almost 2 percent and the dollar index trimmed initial gains but stayed higher.
Gold futures trading volume has been light this week. Prices remained rangebound, with buyers on the sidelines due to a lack of U.S. data and anxiety over the deadlock in Washington.