Asian shares held near 14-month highs on Friday as investors restored bets the Federal Reserve is settling into a phase of very gradual interest rate rises, while Japanese bond yields fell after the Bank of Japan's radical new policy scheme.
"Gold could come under pressure quickly if market opinion shifts more decisively in favor of a December rate hike. Also, the long-run expectation is that the Fed will eventually raise rates, which may stem gold gains," said HSBC analyst James Steel.
Spot gold may stabilise around a support at $1,335 per ounce, and then retest a resistance at $1,343, as indicated by its wave pattern and a Fibonacci projection analysis, according to Reuters technical analyst Wang Tao.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.69 percent to 950.92 tonnes, for a second straight session on Thursday.
Silver fell 0.3 percent to $19.79. Among the precious metals, silver had the best week so far. It rose 5 percent, its highest since the week ending July 1.
Platinum edged up 0.6 percent at $1,058.50. It rose as much as 1.7 percent in the previous session. Palladium was down 0.2 percent at $691.50, after rising 1.5 percent on Thursday.