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Gold edged up on Friday but remained near its weakest level in 10-1/2 months, pressured as the US dollar surged to multi-year peaks after the Federal Reserve raised interest rates and projected further hikes in 2017.

Spot gold was up 0.2 percent at $1,130.81 an ounce by 0249 GMT, after touching its weakest level since February 2 at $1,122.35 in the previous session. Gold fell nearly 1.4 percent on Thursday, its biggest percentage decline in three weeks.

he metal was down more than 2 percent for the week, on track for its sixth consecutive weekly loss.

The nature of recent gold selling implies fresh shorting as well as liquidation," said HSBC analyst James Steel.

"The bearish factors for gold-namely a high US dollar, rising yields and equities and risk-on investor demand appetite-leave bullion clearly on the defensive," Steel said.

"Gold prices continued to come under selling pressure as the impact of the Fed's more hawkish view of rates in 2017 weighed on investor sentiment," ANZ said in a note.

"Subsequent data showing the U.S. labour market is relatively strong, with jobless claims falling 4,000 to 254,000, also helped validate that view."

Reference: Business today