Gold edged lower on Friday and closed down for the week as rallying equity markets and strong U.S. economic data dented demand for the precious metal as an insurance against risk.
Sales of new U.S. single-family homes rose to a six-year high in September, but a sharp downward revision to August's sales pace indicated the housing recovery remains tentative.
Bullion notched a 0.5 percent weekly loss, after two consecutive weekly rises driven by renewed worries about global economic growth.
"A better run of U.S. data has calmed nerves about the wider economy, and that has put pressure on gold in the past few days, as it had been enjoying a safe-haven bid," said Matthew Turner, an analyst at Macquarie.
Spot gold was down 0.1 percent at $1,231.14 an ounce.
U.S. gold futures outperformed spot, settling up $2.70 at $1,231.80 an ounce, with lower-than-usual volume, according to preliminary Reuters data.