Gold hit its lowest since late May on Friday as the dollar surged to a near 14-year peak on expectations for a U.S. rate hike next month and higher fiscal spending from U.S. President-elect Donald Trump's incoming administration.
The dollar is on track for its best fortnight since 1988 against the yen, and hit its highest since early 2003 versus a basket of currencies, as Trump's win stoked talk of tax cuts and fresh investment in infrastructure to boost the U.S. economy.
That weighed on gold, which is priced in dollars, sending it to its lowest since May 30 at $1,203.52 an ounce.
It pulled back some lost ground as the dollar steadied against the euro in early afternoon trade, tracking a retreat in bond yields, but remained under pressure.
Spot gold fell 0.6 percent at $1,208.55 an ounce by 3:20 p.m. EDT. The metal hit $1,203.86, its lowest level since May 30, earlier in the session.
U.S. gold futures for December settled at $1208.80 an ounce