Gold eased on Friday was likely to finish lower for a third week in four, as a resilient dollar and strong U.S. economic data undercut bullion's appeal as a hedge. Spot gold shed 0.3 percent to $1,158.32 an ounce by 0329 GMT and is down 1.5 percent for the week. It has failed to recover strongly from a 4-1/2-year low of $1,131.85 hit last week, on steady outflows from gold-backed funds.
The dollar rose to a fresh seven-year high against the yen on Friday, bolstered by rising Japanese equities amid speculation that Japan's leader would call an election and delay a sales tax hike. The greenback was holding close to a four-year high against a basket of major currencies.The bearishness in bullion's outlook was reflected in holdings of SPDR Gold Trust, the world's top gold-backed exchange-traded fund.
Oil prices fell about 3 percent on Thursday to four-year lows after government data showed US crude stockpiles surged at the delivery point for crude futures. The declines compounded losses from Wednesday after comments by the Saudi oil minister raised fears the world's top oil exporter will not agree to output cuts at the Organization of the Petroleum Exporting Countries' meeting on November 27.