Gold dropped almost two percent to a near six-year low on Friday, set for a sixth straight weekly decline under pressure from a firm U.S. dollar and prospects of a U.S. interest rate rise next month.
Spot gold hit $1,052.46 an ounce, its lowest since February 2010, and was down 1.2 percent at $1,057.50.
Spot prices were down about 2 percent for the week. U.S. gold futures hit a six-year low of $1,051.10 an ounce before closing down 1.3 percent at $1,056.20 and skidding to a sixth straight weekly decline.
Gold was hit by the dollar's advance. The greenback was trading near March's multi-year highs against a basket of major currencies.
"The chatter is all about exchange rates ... Gold is down on the dollar," said Phillip Streible, senior commodities broker for RJO Futures in Chicago.
Greenback-denominated commodities like gold become more expensive for foreign investors when the U.S. currency rises.
The Federal Reserve is widely expected to raise U.S. rates for the first time in nearly a decade when it meets next on Dec. 15-16. Higher rates would rise the opportunity cost of holding non-yielding gold and could dent demand and boost the dollar.
"The omens are not positive for gold in the lead-up to the December rate meeting," Societe Generale analyst Robin Bhar said.
Buying in China has been good but has been unable to support prices, traders said.
Premiums on the Shanghai Gold Exchange, a proxy for demand in China, were trading at $5-$6 an ounce, versus $3-$4 at the beginning of the month