Gold drifted lower on Friday as fears about the health of the global economy abated after successful debt sales by Spain and Italy encouraged investors to put their money in riskier assets. Spot gold fell as much as nearly 1 percent to an intra-day low of $1,634.34 an ounce, before paring some losses after the euro resumed a rally and the dollar weakened against a basket of currencies.
Spot gold slipped 0.1 percent to $1,648.04 an ounce by 0738 GMT, on course for a weekly gain of nearly 2 percent. US gold rose 0.1 percent to $1,649.60.