Gold inched up on Friday as equities fell on the back of worries about the health of Deutsche Bank, spurring some safe-haven demand for the yellow metal, but a firmer dollar capped gains and the metal was on track to end the week down over 1 percent.
Spot gold had risen 0.2 percent to $1,322.80 an ounce by 0439 GMT. It has risen 1 percent in September.
U.S. gold futures were mostly flat at $1,326.40 an ounce.
Deutsche Bank shares slumped to a record low after a report that trading clients had withdrawn excess cash and positions held in the largest German lender.
"Probably the news on Deutsche Bank is spurring some buying," said Ronald Leung, chief dealer, Lee Cheong Gold Dealers in Hong Kong.
"Gold might trade in the range of $1,310-$1,340 until China comes back from holidays," he added.
China's markets will be closed starting on Oct. 1 for the National holidays and resume trading on Oct. 10.
"Gold is probably going to trade side ways for some time," said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central, adding that the charts were providing mixed signals.
"If stocks aren't doing well then we might see a little support for gold."
Asian stocks followed Wall Street lower in early trade on Friday, while oil prices held close to the highest level in almost a month on optimism over an OPEC plan to curb output.
U.S. economic growth was less sluggish than previously thought in the second quarter as exports grew more than imports and businesses raised their investments. However, contracts to buy previously owned U.S. homes dropped in August to the lowest level since January
When positive data is released, investors raise bets on a U.S. interest rate hike, which would increase the opportunity cost of holding non-yielding bullion.
"Any downward move in global equity markets in light of higher interest rates and over stretched equity valuations could result in a renewed move higher for gold...a stronger dollar could keep any over sized rallies somewhat in check," INTL FCStone analyst Edward Meir said in a note.
"We would rather trade gold somewhat from the long side right now, as we suspect we could see a bit more sloppiness for stocks in the light of Deutsche Bank uncertainties."
The dollar index, which measures the greenback against a basket of currencies, was firm at 95.560.
Silver was down 0.2 percent at $19.05 an ounce.
Platinum was down 0.1 percent at $1,025.90 an ounce and palladium rose 0.4 percent to $714. Palladium touched a 7-week high of $721.30 on Thursday.
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Joseph Radford and Christian Schmollinger)