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Gold edged lower on Friday as stocks firmed and the U.S. dollar rose on expectations the Federal Reserve would raise interest rates by the end of the year.

"People are happy to buy at these levels. But, there are a lot of expectations of a Fed rate hike in December, which will be bearish for gold," said Ronald Leung, chief dealer, Lee Cheong Gold Dealers in Hong Kong.

"We think its (Federal Reserve's) rate hiking trajectory will remain very much intact," INTL FCStone analyst Edward Meir said in a note. "As a result, the dollar will likely push higher going into year-end, offering gold its most formidable headwind and even countering the impact of weaker equities."

"Physical demand and geopolitical risk may be the main supporting planks of the gold market going forward," HSBC analyst James Steel wrote in a note.

Reference: Reuters