Gold settled nearly 1 percent lower on Friday, logging a third straight weekly drop, as the dollar was buoyed by a decline in U.S. jobless claims that reinforced the chance of a faster-than-expected tightening in U.S. monetary policy.
The metal was under pressure from the Federal Reserve's indication that it could raise borrowing costs more rapidly than expected when it starts moving.
Any increase in interest rates would hurt investment in non-interest-bearing assets such as bullion.
U.S. gold futures closed 0.8 percent lower at $1,216.60 an ounce, its lowest settlement for 2014, losing about 1 percent for the week. Meanwhile, spot gold was last down 0.8 percent at $1,216 an ounce.
``Gold is suffering from a stronger dollar after the Fed's increase in rate projections earlier this week and also higher equities after the Scotland vote,'' MKS SA head of trading Afshin Nabavi said.