Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
Fed policymakers are seen as sharply divided over whether to increase rates soon or take a more cautious approach.
"Yellen's highly anticipated remarks at Jackson Hole had a hawkish tilt... although with the usual caveats that the timing will be based on how the data unfold," said Avery Shenfeld, chief economist for CIBC Capital Markets.
"Overall, there really is no big surprise here, so we can put the Fed hype aside for now."
The metal slid for the past five sessions, extending losses on Thursday after U.S. jobless and durable-goods data beat forecasts and Kansas City Fed President Esther George said it was time for the Fed to raise rates gradually.
The spot gold price hit a four-week low on Thursday of $1,317.46 an ounce.
Gold discounts in India hit near three-month lows this week, while buying gathered steam elsewhere in Asia as lower prices and festive buying lifted demand for the metal.
Silver was up 0.54 percent at $18.60 an ounce, after hitting an eight-week low of $18.46 on Thursday.
Platinum was nearly flat at $1,068.60, after falling to a 7-1/2-week low of $1,059.50. Palladium was also steady at $684.20.
— CNBC's Matthew J. Belvedere contributed to this report.