Although persistent economic fears and the impasse over the U.S. debt ceiling have alleviated the bullion's decline, the price of gold fell on Friday due to the firm dollar.

At 0301 GMT, spot gold fell by 0.3% to $2,010.29 per ounce and fell by 0.3% for the week. U.S. gold futures fell 0.3% to $2,015.00. Brian Lan, managing director at broker GoldSilver Central said there seems to be profit-taking that is driving prices down, as investors consider the uncertainties surrounding debt negotiations and expect a pause in rate increases by the Federal Reserve

Gold rose on Thursday after data showed a jump in weekly unemployment claims and the smallest annual increase in producer prices last month in more than two years. Cash fell by 0.8% to $23.98 per ounce, platinum fell by 1% to $1,083.24. Palladium rose 0.5% to $1,558.50