The spot gold price dropped to its lowest level in more than two years, pressured by a strong US dollar and the rise of US government bond yields amid concerns about prolonged tightening monetary policy and the likelihood of recession.
Bullion had been hovering above US$1,700 an ounce for most of September, but plummeted as low as $1,660.50 on Thursday and traded around $1,654.55 late Friday, according to Hua Seng Heng Futures.
A gauge of the dollar's strength rose 0.2% and remains close to a record high.
Analysts say gold prices are trending lower. They indicated gold prices have a support level of $1,650 and $1,640 in the next step, with resistance at $1,680 and $1,690, respectively.
Investors project the Federal Reserve will continue to raise interest rates to tame inflation, starting with an increase of 0.75% to 3-3.25% at this month's meeting, marking the third consecutive hike of 0.75%.
Other central banks have also lifted their rates as inflation skyrocketed.
The IMF and the World Bank have both warned that the global economy is approaching a recession.
The World Bank, in particular, cut its global GDP growth outlook for next year to 0.5%, warning the biggest global interest rate hike in 50 years could push the global economy into recession.
The Gold Research Center surveyed 14 gold market experts about their views on the weekly domestic gold price trend and the key factors to monitor. According to the survey, the key factor to watch is the Fed's monetary policy.
Fed chairman Jerome Powell insists the bank will continue to aggressively curb inflation and signalled that a rate cut would not happen anytime soon.
The business sector has raised concerns that the increases will weaken the economy.
Other factors to consider are key US economic figures, including the consumer price index, producer price index, import and export price index, retail sales, industrial production for August and the manufacturing survey, as well as weekly unemployment claims.
The baht continued to depreciate on Friday, trading at 36.99 baht per dollar, the weakest in 16 years.
The Stock Exchange of Thailand Index on Friday also declined to 1,630.40 points, a drop of 0.73%.