Traders await US Federal Reserve chair Janet Yellen's policy move.
Goldman Sachs has forecast that prices will drop to $1,050 in 12 months as US economy improves.
Stronger US dollar will dent the yellow metal's safe-haven status.
Abitibi Royalties takes Yamana Gold and Agnico Eagle Mines to court.
The yellow metal plunged to a new 10-week low as marketeers await key US jobs data and ECB rate decision.
ECB meeting and US nonfarm payrolls data to influence gold prices next week.
Gold and silver stage strongly rally helped by value buying but dollar strength caps gains.
BofA Merrill Lynch analysts say next level to watch is Triangle support at $1269.
Gold has fallen to a two-month low on Thursday as the FOMC minutes on Wednesday showed the US policymakers have started debating prospects of an earlier rate hike.
Standard Chartered becomes the third foreign bank to be granted a gold import license by China.
Safe haven flows and short covering have strengthened gold to a 20-day high, even as silver has fallen to a 50-day low. Platinum and palladium have rallied since 5 August.
US Fed chief Janet Yellen's Congress testimony next week could also influence prices.