- "Better economic data weighed on bonds, with yields subsequently rising and denting investor demand for the precious metal," ANZ analysts said in a note.
Gold prices fell on Friday, on track to post their worst week in a month, as strong US economic data and elevated Treasury yields weighed, while palladium came off a record high scaled a day earlier.
Spot gold slipped 0.3% to $1,765.15 per ounce by 0346 GMT, down nearly 0.6% so far in the week. US gold futures were down 0.1% to $1,765.60 per ounce.
Despite the decline, bullion was poised for its first monthly gain of this year, having jumped to a two-month high of $1,797.67 on April 22.
Data showed on Thursday that US economic growth accelerated in the first quarter as fiscal stimulus fuelled consumer spending and set the course for what is expected to be the strongest performance this year in nearly four decades.
"This string of consecutively strong US economic data is weighing on gold," said Stephen Innes, managing partner at SPI Asset Management, adding that people would rather book profits on month-end after a decent run-up in gold.
"Gold still remains bid, it is just not a strong hand right now, because of the month-end rebalancing." Benchmark US 10-year Treasury yields
hovered near a more than two-week high, increasing the opportunity cost of holding non-yielding bullion.
"Better economic data weighed on bonds, with yields subsequently rising and denting investor demand for the precious metal," ANZ analysts said in a note.
Palladium fell 0.1% to $2,948.78 per ounce, after hitting an all-time high of $2,981.99 on Thursday. It was still on track to post its third consecutive weekly and monthly gain.
Silver fell 0.7% to $25.89 per ounce but was poised for a 6% monthly gain - its biggest since December. Platinum was up 0.2% at $1,200.66.