Singapore - Gold fell to fresh seven-and-a-half month lows on Friday, poised to post its worst week in more than three months as a stronger dollar and easing tensions in Ukraine curbed appetite for safe-haven bullion.
Gold was also hurt after Ukraine's president said this week Russia had removed the bulk of its forces from his country, raising hopes for a peace drive now underway after five months of conflict in which more than 3 000 people have been killed.
Spot gold had slipped 0.3% to $1 237 an ounce by 08:23, after earlier falling to $1 231.95 - its lowest since late January.
"A stronger dollar and higher bond yields have been an issue for gold all week, and remain a headwind going forward," said ANZ analyst Victor Thianpiriya.
"With geopolitical concerns also easing, there seems to be little support for gold in the short-term."
Gold is down 2.5% for the week, its biggest weekly drop since the week ended May 30.
Weak investor interest was reflected in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, that saw holdings drop 0.32 tonnes to 788.40 tonnes on Thursday.
Bearish momentum indicators have accelerated, and a sustained break below $1 232 could take gold near $1 180, ScotiaMocatta said.
The weakness in gold also pulled down other precious metals, with silver falling to a 14-month low, heading for a loss for the eighth week out of nine.
Platinum, trading near its lowest since December, was poised for its worst week since April. With a near 7% drop, palladium was the worst performing precious metal of the week. The decline marks the metal's biggest weekly loss since June 2013.