Gold prices drifted lower on Friday as the dollar gained in strength against most major currencies after equities declined with a government shutdown looming large.
According to reports, U.S. President Donald Trump has vowed a "very long" government shutdown if Democrats do not fund his border wall. Trump is demanding $5.7 billion, which was passed by the House of Representatives. The the demand is likely to be rejected in the Senate.
"I hope we don't but we are totally prepared for a very long shutdown," Trump said earlier in the day. In the event of there being a no deal before the midnight deadline, parts of the US government will begin to close.
With only hours to remaining to strike a deal, Mr Trump said that the "chances are probably very good" of a "Democrat shutdown".
The dollar index advanced to 96.48, gaining nearly 0.8%.
Gold futures for February ended down $9.80, or 0.8%, at $1,258.10 an ounce. On Thursday, gold futures ended higher by $11.50, or 0.9%, at $1,267.90, the highest settlement since June 25, 2018.
For the week, gold futures gained 1.4%.
Silver futures for March ended at $14.702 an ounce, down $0.167 from previous close.
Copper futures for March settled at $2.674 per pound, down $0.023 from Thursday's close.
In U.S. economic news, a report from the Commerce Department showed a rebound in durable goods orders in the month of November. The report said durable goods orders climbed by 0.8% in November after plunging by 4.3% in October. Economists had expected durable goods orders to jump by 1.6%.
Excluding a notable rebound in orders for transportation equipment, durable goods orders fell by 0.3% in November after rising by 0.4% in October. Ex-transportation orders had been expected to edge up by 0.2%.
Another report from the Commerce Department showed real gross domestic product surged up by 3.4% in the third quarter compared to the previously estimated 3.5% jump. The pace of GDP growth had been expected to be unrevised.
The increase in consumer spending, which accounts for about 70% of the economy, was downwardly revised slightly to 3.5% from 3.6%.
Revised data also showed exports plummeted by 4.9% in the third quarter after surging up by 9.3% in the second quarter.
The Commerce Department said the downward revisions to consumer spending and exports were partly offset by an upward revision to private inventory investment, resulting in a general picture of economic growth that remains the same.
Meanwhile, revised data released by the University of Michigan showed consumer sentiment index for December was upwardly revised to 98.3 from a preliminary reading of 97.5. Economists had expected the index to be unrevised.
With the unexpected upward revision, the reading on consumer sentiment in December is above the final November reading of 97.5.
Despite the recent sell-off on Wall Street, Surveys of Consumers chief economist Richard Curtin said just 12% of consumers named falling stock prices as a primary concern about recent economic developments in the last week of the survey.
The report said the current economic conditions index jumped to 116.1 in December from 112.3 in November, while the index of consumer expectations fell to 87.0 from 88.1.
With regard to inflation, one-year inflation expectations edged down to 2.7% in December from 2.8% in November and five-year inflation expectations dipped to 2.5% from 2.6%.