Gold settled lower on Friday as U.S. equities rebounded but managed to log a second straight weekly gain as concerns over the global economy have raised speculation that the U.S. Federal Reserve could keep interest rates low for longer.
The dollar index rose, and the S&P 500 index gained nearly 2 percent after data showed U.S. housing starts and permits rose in September, a signal the market's modest recovery is supporting what appears to be growing strength in the broader economy.
U.S. equities, however, are set for their fourth straight weekly decline, their longest streak in more than three years, on concerns about the economy and the spread of the Ebola virus.
"Gold has had a good week because just about everything else has had a bad week," Macquarie analyst Matthew Turner said. "The rally has paused today, however, as the wider markets are wondering whether things really are quite as bad as they thought they were yesterday."