Gold fell to a one-month low on Friday, heading for a third successive weekly loss, as uncertainty over the timing of the U.S. Federal Reserve's first interest rate increase in nearly a decade weighed on appetite for the metal.
Prices are down 2 percent this week, and touched their weakest level since August 11 at $1,098.35 an ounce.
Traders are awaiting the Fed's next policy statement on Sept. 17 for clues on the timing of a U.S. interest rate rise, before taking any big positions in gold.
"People don't want to be positioned long gold going into the meeting, more than anything else," said Bill O'Neill, co-founder of commodities investment firm Logic Advisors in New Jersey, adding that there is "an erosive market tone."
"The market remains a very low participation market from the big players. The hedge funds certainly are not looking to make major commitments in gold," O'Neill said.
Gold has benefited in recent years from ultra-low rates, which cut the opportunity cost of holding non-yielding bullion while weighing on the dollar, in which it is priced.