Spot gold briefly fell as low as USD 1,166.75 per ounce on a recovery in the dollar on Friday, down 2.2 % from the notional close in New York, before paring the losses to claw back above USD 1,170.
Bullion hit a fresh record high of USD 1,194.90 on Thursday before the dollar bounced from 15-month lows on concern over debt problems in Dubai.
