Gold fell for a third day on Friday as the dollar firmed after the UK national election left no single party with a claim to power though most investors seemed to shrug off the uncertainty.
With the majority of seats counted, incumbent Prime Minister Theresa May's Conservative Party had no way to win an outright majority in parliament.
She had called the election to gain a stronger mandate before launching into arduous divorce talks with the European Union.
"The poll verdict could create mild risk aversion which should be mildly supportive for gold; but depends on what sort of negotiations take place between the EU and UK (over Brexit)," NAB analyst John Sharma said. "For now, looks like the market has taken this in its stride."
Spot gold was down 0.77 percent at $1,269.60 per ounce. The yellow metal is poised for its first weekly drop in five.
U.S. gold futures for August delivery were 0.89 percent lower at $1,267.06. Dollar-denominated gold typically falls in value when the greenback gains.
Earlier in the day, gold was pressured by events in the United States, including former Federal Bureau of Investigation (FBI) director James Comey's Congressional testimony and
improving economic data.