Gold fell on Friday and was on track for its first weekly decline in five, its worst since November, on growing expectations of a US rate hike as early as this month. Spot gold dropped 0.3 percent to $1,231.31 per ounce at 0730 GMT, after hitting a low of $1,229.05 earlier in the session. The metal has lost nearly 2.3 percent so far this week.
US gold futures fell 0.1 percent to $1,231. Increasing chances of a rate hike should keep a lid on any gold rallies leading into the March meeting, MKS PAMP Group trader Sam Laughlin said.
"With (US Federal Reserve) President Janet Yellen on the wires tonight, we look to see further weakness across the precious complex should she, as expected, promote the potential for an interest rate increase in March," Laughlin said.
"Initial support for gold sits around $1,230, while below this we look to the 100 day moving average at $1,210." Spot gold may temporarily hover above a support at $1,232 per ounce and then bounce towards a resistance at $1,241 before falling again, according to Reuters technical analyst Wang Tao.
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