Gains in U.S. equities also reduced the appeal of safe-haven bullion and bonds, while the U.S. dollar rose to its highest mark since Aug. 19 against a basket of currencies, further pressuring bullion.
"The effect of the Chinese rate cut faded with breathtaking alacrity," said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York.
"The surge in U.S. shares and yields backing up as a result weighed on metals and once gold slipped back below $1,170, day traders liquidated and we didn't find decent support until $1,160."
Spot gold eased 0.1 percent to $1,164.26 an ounce. U.S. gold futures settled down 0.3 percent at $1,162.8. Bullion was on course for a weekly loss, snapping two weeks of gains.
Gold has languished at 5-1/2-year lows in recent months on expectations the Fed will raise rates this year, potentially lifting the opportunity cost of holding non-yielding bullion.
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Concerns over the health of the global economy have recently pushed back expectations into 2016. But further stimulus in China and upbeat U.S. data have increased the likelihood of a rate rise in December.
Better-than-expected manufacturing figures for October supported the dollar. U.S. flash manufacturing PMI rose to its highest level since March, beating expectations for a slight decline from the previous month.
A stronger dollar weighs on gold by making the metal more expensive for holders of other currencies.
Friday's slide deepened losses from the previous session, when gold fell to its weakest point since Oct. 13. The metal was on course to lose 1.2 percent this week, snapping two weeks of gains.